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Remarketing Agreement Bond

This press release describes the tendering and remarketing procedure for obligations in general and in order to give you a summary of your right and ability to sell your obligations as part of the tendering process. This is not intended to replace or oust the offer document or the supplementary offer documents relating to the loans (the “declarations”). Licensees should read and understand the risk factors and other information contained in the disclosures, including information about the bidder, remarketing agent, letter of credit or purchaser of availability obligations and the tendering process. As described in more detail in the remarketing agreement, the remarketing agent is not obligated or responsible to purchase bonds from holders, but may, on his individual property, acquire bonds on his own behalf at his discretion. The remarketing agent may at any time stop buying bonds on his own behalf from the holders, for any reason and without notice, even if he has previously acquired bonds from the same issue or other obligations. For example, the remarketing agent may acquire, at his own discretion, bonds offered on his own behalf in order to obtain a successful remarketing of the bonds offered. However, the remarketing agent is not required to purchase bonds, either on his own behalf or as a remarketing agent, and the decision to purchase bonds or not to buy bonds on his own behalf is left to the discretion of the remarketing agent. The remarketing agent may also, as an individual, create a market for bonds by regularly buying and selling bonds on his own behalf, except in the context of an optional or compulsory offer and remarketing. These purchases and sales may be at or below the level. However, the remarketing agent is not required to make a contract in bonds, either in his individual capacity or as a remarketing agent. The remarketing agent may also sell bonds he has acquired on his own behalf, or enter into derivatives transactions or other agreements with related companies or other companies, in order to reduce his exposure to these bonds.

In cases where the parent company of the remarketing agent or a subsidiary is the letter of credit bank or the purchaser of custody obligations, this may influence the individual decisions of the remarketing agent with respect to the purchase, maintenance, tender and/or sale of bonds. The purchase of bonds by the remarketing agent on his own behalf could give the impression that demand and liquidity in the bond market are greater than would be the case if the remarketing agent did not buy bonds in this way. The practices described above may also reduce the number of tenders for remarketing. In addition, the remarketing agent`s decision to purchase bonds on his own behalf may give other bondholders and potential buyers the impression that other holders may sell their bonds below the normal auction date. Holders do not have to rely on the remarketing agent to purchase their bonds. VRDO is generally designed with one of two types of cash assistance for the right to tender of the VRDO bearer: a letter of credit (LOC) or a standby bond purchase contract (SBPA), in both cases provided by a bank or other eligible financial institution (liquidity provider). Sometimes an issuer or borrower will provide cash support to VRDO, these situations are not discussed here and investors should provide the underlying documents to understand these provisions. Under a typical LOC, the liquidity provider provides liquidity that respects a bearer`s offer, but also pays capital and interest on the bonds, either directly to investors through an agent, as in a direct payment LOC, or in a guarantee agreement in the event of non-payment of the issuer or debtor.


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