In the event that a bondholder (including the remarketing agent, in his individual capacity, if he holds) wishes to sell bonds, while the bonds are in periodic interest repayment mode, the bearer may tender for the purchase of the bonds at a price in excess of accrued interest, excluding a notice of tender to the offeror and handing it over to the bidder. , as described in more detail in the disclosures. The tender must be submitted to the specified number of days prior to the proposed purchase date. During this auction period, the remarketing agent is required to do his best to find a buyer for the bonds offered at a price plus accrued interest. If the remarketing representative cannot find such a buyer for the bonds offered during the auction period, the bidder or agent will charge the letter of credit or the purchaser of reserve bonds equal to the principal amount of the bonds offered, plus accrued interest, for the bonds at the end of the tender period. The remarketing agent is an independent contractor designated by the issuer (the “issuer”) for the issuance of bonds. It is paid by the issuer for the performance of the services provided in the remarketing agreement between the issuer and the remarketing agent (“the remarketing agreement”), as described in more detail in the statements. The remarketing agent is appointed by the issuer and is subject to the provisions of the remarketing agreement, but acts independently of the issuer, bidder and credit bank letter or purchaser of custody obligations. The interests of the remarketing agent may differ from the interests of existing holders and potential bond buyers and, in some cases, are at odds with them. The bonds – paid once by the insurer – are properly executed, authorized, issued and delivered by the issuer to the insurer.
After the issuer delivers the bonds to the insurer, the insurer will put the bonds on the market at the price and yield of the bond purchase agreement and investors will purchase the bonds from the insurer. The insurer takes the proceeds of this sale and makes a profit based on the difference between the price at which it purchased the issuer`s bonds and the price at which it sells the bonds to fixed-rate investors.