beneficial owners of the bonds as described in the accompanying prospectus under the heading Description of the New Bonds Book-Entry Only Securities.
Business Day means any day other than a Saturday or a Sunday or a day on which banking institutions in The City of New York are
authorized or required by law or executive order to remain closed or a day on which the corporate trust office of the corporate trustee is closed for business.
Form and Denomination
The bonds will be
issued in denominations of $1,000 and integral multiples of $1,000 in excess thereof. The bonds will be represented by a global certificate without coupons registered in the name of a nominee of DTC.
Optional Redemption
Prior to
June 15, 2033 (three months prior to the maturity date of the bonds) (the Par Call Date), we may redeem the bonds at our option, in whole or in part, on not less than 30 nor more than 60 days notice prior to the date
fixed for redemption, at any time and from time to time, at a redemption price (expressed as a percentage of principal amount and rounded to three decimal places) equal to the greater of:
|
(1) |
(a) the sum of the present values of the remaining scheduled payments of principal of the bonds to be redeemed
and interest thereon discounted to the redemption date (assuming the bonds matured on the Par Call Date) on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 20 basis points less
(b) interest accrued to the redemption date, and |
|
(2) |
100% of the principal amount of the bonds to be redeemed, |
plus, in either case, accrued and unpaid interest thereon to, but not including, the redemption date.
On or after the Par Call Date, we may redeem the bonds, in whole or in part, on not less than 30 nor more than 60 days notice prior to
the date fixed for redemption, at any time and from time to time, at a redemption price equal to 100% of the principal amount of the bonds being redeemed plus accrued and unpaid interest thereon to, but not including, the redemption date.
If, at the time notice of redemption is given, the redemption monies are not held by the corporate trustee, the redemption may be made subject
to receipt of such monies before the date fixed for redemption, and such notice shall be of no effect unless such monies are so received.
We may apply cash we deposit under any provision of the mortgage, with certain exceptions, to the redemption or purchase, including the
purchase from us, of first mortgage bonds of any series under the mortgage, including the bonds.
Treasury Rate means, with
respect to any redemption date, the yield determined by us in accordance with the following two paragraphs.
The Treasury Rate shall be
determined by us after 4:15 p.m., New York City time (or after such time as yields on U.S. government securities are posted daily by the Board of Governors of the Federal Reserve System), on the third Business Day preceding the redemption date based
upon the yield or yields for the most recent day that appear after such time on such day in the most recent statistical release published by the Board of Governors of the Federal Reserve System designated as Selected Interest Rates (Daily)
H.15 (or any successor designation or publication) (H.15) under the caption U.S. government securities Treasury constant maturities Nominal (or any successor caption or heading) (H.15
TCM). In determining the Treasury Rate, we shall select, as applicable:
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(1) |
the yield for the Treasury constant maturity on H.15 exactly equal to the period from the redemption date to
the Par Call Date (the Remaining Life); or |
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