EXHIBIT 4.3.2
FORM OF SERIES SUPPLEMENT
CONSUMERS FUNDING LLC,
Issuer
and
THE BANK OF NEW YORK,
Trustee
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2001-1 SERIES SUPPLEMENT
Dated as of [ ], 2001
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2001-1 SERIES SUPPLEMENT dated as of [______], 2001 (this
"Supplement"), by and between CONSUMERS FUNDING LLC, a Delaware limited
liability company (the "Issuer"), and THE BANK OF NEW YORK, a New York
banking corporation (the "Trustee"), as Trustee under the Indenture dated
as of [________], 2001 between the Issuer and the Trustee (the
"Indenture").
PRELIMINARY STATEMENT
Section 9.01 of the Indenture provides, among other things, that
the Issuer and the Trustee may at any time and from time to time enter into
one or more indentures supplemental to the Indenture for the purposes of
authorizing the issuance by the Issuer of a Series of Securitization Bonds
and specifying the terms thereof. The Issuer has duly authorized the
execution and delivery of this Supplement and the creation of a Series of
Securitization Bonds with an initial aggregate principal amount of
$468,592,000 to be known as the Issuer's Securitization Bonds, Series
2001-1 (the "Series 2001-1 Securitization Bonds"). All acts and all things
necessary to make the Series 2001-1 Securitization Bonds, when duly
executed by the Issuer and authenticated by the Trustee as provided in the
Indenture and this Supplement and issued by the Issuer, the valid, binding
and legal obligations of the Issuer and to make this Supplement a valid and
enforceable supplement to the Indenture have been done, performed and
fulfilled and the execution and delivery hereof have been in all respects
duly and lawfully authorized. The Issuer and the Trustee are executing and
delivering this Supplement in order to provide for the Series 2001-1
Securitization Bonds.
In order to secure the payment of principal of and interest on the
Series 2001-1 Securitization Bonds issued and to be issued under the
Indenture and/or any Series Supplement, the Issuer hereby confirms the
Grant to the Trustee for the benefit of the Holders of the Series 2001-1
Securitization Bonds from time to time issued and Outstanding, of all of
the Issuer's right, title and interest in, to and under the Collateral,
including, without limitation, the Securitization Property transferred by
the Seller to the Issuer as of the Initial Transfer Date pursuant to the
Sale Agreement and all proceeds thereof.
The Trustee, on behalf of the Holders of the Series 2001-1
Securitization Bonds, acknowledges the confirmation of such Grant, accepts
the trusts hereunder in accordance with the provisions hereof and agrees to
perform its duties required in the Indenture and this Supplement.
SECTION 1. Definitions.
All terms used in this Supplement that are defined in the
Indenture, either directly or by reference therein, have the meanings
assigned to them therein, except to the extent such terms are defined or
modified in this Supplement or the context clearly requires otherwise.
SECTION 2. Other Definitional Provisions.
Authorized Denominations shall mean $1,000 and integral
multiples of $1.00 above that amount, provided, however, that one
Securitization Bond of each Class may have a denomination of less than
$1,000.
Calculation Period means, with respect to a Payment Date,
the period from and including the preceding Payment Date to but excluding
such Payment Date, or in the case of the first Calculation Period, from and
including the Series Issuance Date to but excluding the initial Payment
Date.
Expected Amortization Schedule means Schedule A to this
Supplement.
Expected Final Payment Date means, with respect to any
Class of the Series 2001-1 Securitization Bonds, the expected final payment
date therefor, as specified in Section 4 of this Supplement.
Final Maturity Date means, with respect to any Class of
the Series 2001-1 Securitization Bonds, the final maturity date thereof, as
specified in Section 4 of this Supplement.
Interest Rate has the meaning set forth in Section 4 of
this Supplement.
Overcollateralization Amount has the meaning set forth in
Section 6(d) of this Supplement.
Payment Date has the meaning set forth in Section 6(a) of
this Supplement.
Record Date shall mean, with respect to any Payment Date,
the Business Day prior to such Payment Date or, with respect to any
Definitive Securitization Bonds, the last Business Day of the month
preceding such Payment Date.
Required Capital Amount has the meaning set forth in
Section 5(e) of this Supplement.
Series Issuance Date has the meaning set forth in Section
3(b) of this Supplement.
SECTION 3. Designation; Series Issuance Dates.
(a) Designation. The Series 2001-1 Securitization Bonds
shall be designated generally as the Issuer's Securitization Bonds, Series
2001-1, and further denominated as Class A-1, Class A-2, Class A-3 and
Class A-4.
(b) Series Issuance Date. The Series 2001-1
Securitization Bonds that are authenticated and delivered by the Trustee to
or upon the order of the Issuer on [______], 2001 (the "Series Issuance
Date") shall have as their date of authentication [______], 2001.
SECTION 4. Initial Principal Amount; Interest Rate; Expected Final
Payment Date; Final Maturity Dates.
The Securitization Bonds of each Class of the Series 2001-1
Securitization Bonds shall have the initial principal amounts, bear
interest at the Interest Rates and have Expected Final Payment Dates and
Final Maturity Dates as set forth below:
Initial
Principal Expected Final Final
Class Amount Interest Rate Payment Date Maturity Date
----- ------ ------------- ------------ -------------
A-1 $
A-2 $
A-3 $
A-4 $
The interest payable on the Series 2001-1 Securitization Bonds,
Class A-1, Class A-2, Class A-3 and Class A-4 for any Payment Date shall be
computed on the basis of a 360-day year of twelve 30-day months or, for the
initial Payment Date, the number of days from and including the Series
Issuance Date to but excluding the initial Payment Date.
SECTION 5. Payment Dates; Expected Amortization Schedule for
Principal; Interest; Overcollateralization Amount; Required Capital Amount.
(a) Payment Dates. The Payment Dates for each Class of
the Series 2001-1 Securitization Bonds are January 20, April 20, July 20,
October 20 of each year or, if any such date is not a Business Day, the
next succeeding Business Day, commencing on July 20, 2002 and continuing
until the earlier of repayment of such Class in full and the applicable
Final Maturity Date.
(b) Expected Amortization Schedule for Principal. Except
in the case of an optional redemption pursuant to Section 10.01 of the
Indenture, unless an Event of Default has occurred and is continuing and
the unpaid principal amount of all Series of Securitization Bonds has been
declared to be due and payable together with accrued and unpaid interest
thereon, on each Payment Date the Trustee shall distribute to the Series
2001-1 Securitization Bondholders of record as of the related Record Date
amounts payable in respect of the Series 2001-1 Securitization Bonds
pursuant to Section 8.02(g) of the Indenture as principal, in accordance
with the Expected Amortization Schedule. Notwithstanding the foregoing, if
one or more Classes did not receive principal on any prior Payment Date in
accordance with the Expected Amortization Schedule, such shortfalls of
principal shall be paid prior to the payment of principal scheduled to be
paid on the current Payment Date and shall be paid in the order in which
such amounts were scheduled to be paid previously pursuant to the Expected
Amortization Schedule; provided, however, that in no event shall a
principal payment pursuant to this Section 6(b) on any Class on a Payment
Date be greater than the amount that reduces the Outstanding Amount of such
Class of Series 2001-1 Securitization Bonds to the amount specified in the
Expected Amortization Schedule for such Class and Payment Date.
(c) Interest. On each Payment Date after the initial
Payment Date, interest will be payable on the Series 2001-1 Securitization
Bonds in an amount equal to with respect to the Series 2001-1
Securitization Bonds, Class A-1, Class A-2, Class A-3 and Class A-4, the
number of days (determined on the basis of a 360-day year of twelve 30-day
months and assuming that the 20th day is also a Business Day) from and
including the preceding Payment Date to, but excluding, the current Payment
Date, divided by 360.
With respect to the initial Payment Date, interest will
be payable in an amount equal to the number of days (determined on the
basis of a 360-day year of twelve 30-day months) from and including the
Series Issuance Date to, but excluding, the initial Payment Date divided by
360, times the product of:
(a) the applicable Interest Rate for such Class
times
(b) the original principal amount of such Class
of Securitization Bonds as of the Series Issuance Date.
(d) Overcollateralization Amount. The
Overcollateralization Amount for the Series 2001-1 Securitization Bonds
shall be as set forth in Schedule B hereto.
(e) Required Capital Amount. The Required Capital Amount
for the Series 2001-1 Securitization Bonds shall be $100,000.
(f) No Premium. No premium will be payable in connection
with the early redemption of the Series 2001-1 Securitization Bonds
SECTION 6. Authorized Denominations. The Series 2001-1
Securitization Bonds shall be issuable in the Authorized Denominations.
SECTION 7. Redemption.
(a) Mandatory Redemption. The Series 2001-1
Securitization Bonds shall not be subject to mandatory redemption.
(b) Optional Redemption. The Issuer may redeem the
Securitization Bonds of Series 2001-1, at its option, on any Payment Date
in accordance with Section 10.01 of the Indenture if (1) after giving
effect to payments that would otherwise be made on such Payment Date, the
Outstanding Amount of such Series has been reduced to less than five
percent of the initial principal balance of such Series and (2) no Interest
Rate Swap Agreement is in effect.
SECTION 8. Credit Enhancement. No credit enhancement (other than
the Overcollateralization Amount, the Required Capital Amount and any
adjustments to the Securitization Charge approved by the MPSC as
contemplated in the Servicing Agreement) is provided for the Series 2001-1
Securitization Bonds.
SECTION 9. Delivery and Payment for the Series 2001-1
Securitization Bonds; Form of the Series 2001-1 Securitization Bonds. The
Trustee shall deliver the Series 2001-1 Securitization Bonds to the Issuer
when authenticated in accordance with Section 2.02 of the Indenture. The
Series 2001-1 Securitization Bonds of each Class shall be in the form of
Exhibits A through D hereto.
SECTION 10. Administration Fee. The Administrator shall be paid by
the Issuer a fee of $[ ] on each Payment Date with respect to the Series
2001-1 Securitization Bonds.
SECTION 11. Confirmation of Indenture. As supplemented by this
Supplement, the Indenture is in all respects ratified and confirmed and the
Indenture, as so supplemented by this Supplement, shall be read, taken, and
construed as one and the same instrument.
SECTION 12. Counterparts. This Supplement may be executed in any
number of counterparts, each of which so executed shall be deemed to be an
original, but all of such counterparts shall together constitute but one
and the same instrument.
SECTION 13. Governing Law. This Supplement shall be construed in
accordance with the laws of the State of Michigan, without reference to its
conflict of law provisions, and the obligations, rights and remedies of the
parties hereunder shall be determined in accordance with such laws.
IN WITNESS WHEREOF, the Issuer and the Trustee have caused this
Supplement to be duly executed and delivered by their respective officers
thereunto duly authorized as of the date first above written.
CONSUMERS FUNDING LLC,
as Issuer
By:
-----------------------------
Name:
Title: Manager
THE BANK OF NEW YORK, as Trustee
By:
----------------------------
Name:
Title: Assistant Vice President
SCHEDULE A
Expected Amortization Schedule
Outstanding Principal Balance
All amounts are in United States Dollars
Payment Date Class A-1 Class A-2 Class A-3 Class A-4
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SCHEDULE B
Required Overcollateralization Level Schedule
Exhibit A to Series Supplement
Form of Bond
REGISTERED $
No. R- CUSIP NO.
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SEE REVERSE FOR CERTAIN DEFINITIONS
THE PRINCIPAL OF THIS CLASS A-1 SECURITIZATION BOND WILL BE PAID
IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL
AMOUNT OF THIS CLASS A-1 SECURITIZATION BOND AT ANY TIME MAY BE LESS THAN
THE AMOUNT SHOWN ON THE FACE HEREOF. THE HOLDER OF THIS CLASS A-1
SECURITIZATION BOND HEREBY COVENANTS AND AGREES THAT PRIOR TO THE DATE
WHICH IS ONE (1) YEAR AND ONE (1) DAY AFTER THE PAYMENT IN FULL OF THE
SERIES 2001-1, CLASS A-1 SECURITIZATION BONDS, IT WILL NOT INSTITUTE
AGAINST, OR JOIN ANY OTHER PERSON IN INSTITUTING AGAINST, THE ISSUER ANY
BANKRUPTCY, REORGANIZATION, ARRANGEMENT, INSOLVENCY OR LIQUIDATION
PROCEEDINGS OR OTHER SIMILAR PROCEEDING UNDER THE LAWS OF THE UNITED STATES
OR ANY STATE OF THE UNITED STATES. TRANSFERS OF THIS GLOBAL SECURITIZATION
BOND SHALL BE LIMITED TO TRANSFERS IN THE CLEARING AGENCY OR TO A SUCCESSOR
THEREOF OR SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS
GLOBAL SECURITIZATION BOND SHALL BE LIMITED TO TRANSFERS MADE IN
ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE.
CONSUMERS FUNDING LLC
SECURITIZATION BONDS, SERIES 2001-1, CLASS A-1.
Interest Original Principal Expected Final
Rate Amount Payment Date Maturity Date
% $
CONSUMERS FUNDING LLC, a limited liability company formed and
existing under the laws of the State of Delaware (herein referred to as the
"Issuer"), for value received, hereby promises to pay to the Registered
Holder hereof, or registered assigns, the Original Principal Amount shown
above in quarterly installments on the Payment Dates (as defined below) and
in the amounts specified on the reverse hereof or, if less, the amounts
determined pursuant to Section 8.02(g) of the Indenture, in each year,
commencing on the date determined as provided on the reverse hereof and
ending on or before the Final Maturity Date, to pay the entire unpaid
principal hereof on the Final Maturity Date and to pay interest, at the
Interest Rate shown above at a fixed rate, on each January 20, April 20,
July 20, and October 20, and if any such day is not a Business Day, the
next succeeding Business Day, commencing on July 20, 2002 and continuing
until the earlier of the payment of the principal hereof and the Final
Maturity Date (each a "Payment Date"), on the principal amount of this
Class A-1 Securitization Bond outstanding from time to time. Interest will
be computed (i) for the first Payment Date on the basis of the number of
days (determined on the basis of a 360-day year of twelve 30-day months)
from and including the Series Issuance Date, to but excluding the initial
Payment Date, divided by 360, multiplied by [ ]%, multiplied by the
Original Principal Amount of the Class A- 1 Securitization Bonds, and (ii)
for each succeeding Payment Date, the number of days (deter mined on the
basis of a 360-day year of twelve 30-day months) from and including the
preceding Payment Date to, but excluding, the current Payment Date, divided
by 360, multiplied by [ ]%, multiplied by the Outstanding Amount of the
Class A-1 Securitization Bonds as of the close of business on the preceding
Payment Date after giving effect to all payments of principal made to the
Holders of the Class A-1 Securitization Bonds on such preceding Payment
Date. Such principal of and interest on this Class A Securitization Bond
shall be paid in the manner specified on the reverse hereof.
The principal of and interest on this Series 2001-1, Class A-1
Securitization Bond are payable in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of
public and private debts. All payments made by the Issuer with respect to
this Class A-1 Securitization Bond shall be applied first to interest due
and payable on this Class A-1 Securitization Bond as provided above and
then to the unpaid principal of this Class A-1 Securitization Bond, all in
the manner set forth in Section 8.02(g) of the Indenture.
Reference is made to the further provisions of this Class A-1
Securitization Bond set forth on the reverse hereof, which shall have the
same effect as though fully set forth on the face of this Class A-1
Securitization Bond.
Unless the certificate of authentication hereon has been executed
by the Trustee whose name appears below by manual signature, this Class A-1
Securitization Bond shall not be entitled to any benefit under the
Indenture referred to on the reverse hereof, or be valid or obligatory for
any purpose.
IN WITNESS WHEREOF, the Issuer has caused this instrument to be
signed, manually or in facsimile, by an authorized Manager of the Issuer.
Dated: [ ]
CONSUMERS FUNDING LLC
By:________________________
Name:
Title: Manager
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
Dated: [ ]
This is one of the Class A-1 Securitization Bonds of the Series
2001-1 Securitization Bonds, designated above and referred to in the
within-mentioned Indenture.
THE BANK OF NEW YORK, as Trustee
By:______________________________
Name:
Title:
REVERSE OF SECURITIZATION BOND
This Series 2001-1, Class A-1 Securitization Bond is one of a duly
authorized issue of Securitization Bonds of the Issuer, designated as its
Securitization Bonds (herein called the "Securitization Bonds"), issued and
to be issued in one or more Series, which Series are issuable in one or
more Classes. The Series 2001-1 Securitization Bonds consist of eight
Classes, including the Class A-1 Securitization Bonds (herein called the
"Class A-1 Securitization Bonds"). The Class A-1 Securitization Bonds have
been issued under an indenture dated as of [
], and a series supplement thereto dated as of [ ], (such series
supplement, as supplemented or amended, the "Series Supplement" and,
collectively with such indenture, as supplemented or amended, the
"Indenture"), each between the Issuer and The Bank of New York, as Trustee
(the "Trustee", which term includes any successor trustee under the
Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the Collateral pledged, the
nature and extent of the security, the respective rights, obligations and
immunities thereunder of the Issuer, the Trustee and the Holders of the
Securitization Bonds and the terms and conditions under which additional
Securitization Bonds may be issued. All terms used in this Class A-1
Securitization Bond that are defined in the Indenture, as supplemented or
amended, shall have the meanings assigned to them in the Indenture.
The Class A-1 Securitization Bonds, the other Classes of Series
2001-1 Securitization Bonds and any other Series of Securitization Bonds
issued by the Issuer are and will be equally and ratably secured by the
Collateral pledged as security therefor as provided in the Indenture.
The principal of this Class A-1 Securitization Bond shall be
payable on each Payment Date only to the extent that amounts in the
Collection Account are available therefor, and only until the outstanding
principal balance of the Class A-1 Securitization Bonds on such Payment
Date (after giving effect to all payments of principal, if any, made on
such Payment Date) has been reduced to the principal balance specified in
the Expected Amortization Schedule which is attached to the Series
Supplement as Schedule A, unless payable earlier either because
(i) an Event of Default has occurred and is continuing
and the Trustee or the Holders of Securitization Bonds
representing not less than a majority of the Outstanding Amount of
the Securitization Bonds of all Series have declared the
Securitization Bonds to be immediately due and payable in
accordance with Section 5.02 of the Indenture, or
(ii) the Issuer, at its option, has called for the
redemption of the Series 2001-1 Securitization Bonds in whole
pursuant to Section 8(b) of the Series Supplement and Section
10.01 of the Indenture.
However, actual principal payments may be made in lesser than expected
amounts and at later than expected times as determined pursuant to Section
8.02(g) of the Indenture. The entire unpaid principal amount of this Series
2001-1, Class A-1 Securitization Bond shall be due and payable on the
earlier of the Final Maturity Date hereof and the Redemption Date, if any.
Notwithstanding the foregoing, the entire unpaid principal amount of the
Securitization Bonds shall be due and payable, if not then previously paid,
on the date on which an Event of Default shall have occurred and be
continuing and the Trustee or the Holders of the Securitization Bonds of
all Series representing not less than a majority of the Outstanding Amount
of the Securitization Bonds have declared the Securitization Bonds to be
immediately due and payable in the manner provided in Section 5.02 of the
Indenture. All principal payments on the Class A-1 Securitization Bonds
shall be made pro rata to the Class A-1 Securitization Bondholders entitled
thereto based on the respective principal amounts of the Series 2001-1,
Class A-1 Securitization Bonds held by them.
Payments of interest on this Class A-1 Securitization Bond due and
payable on each Payment Date, together with the installment of principal
payable on this Class A-1 Securitization Bond on such Payment Date shall be
made by check mailed first-class, postage prepaid, to the Person whose name
appears as the Registered Holder of this Class A-1 Securitization Bond (or
one or more predecessors of such Securitization Bond) in the Securitization
Bond Register as of the close of business on the Record Date or in such
other manner as may be provided in the Series Supplement, except that with
respect to Class A-1 Securitization Bonds registered on the Record Date in
the name of a Clearing Agency, payments will be made by wire transfer in
immediately available funds to the account designated by such Clearing
Agency and except for the final installment of principal payable with
respect to this Class A-1 Securitization Bond on a Payment Date which shall
be payable as provided below. Such checks shall be mailed to the Person
entitled thereto at the address of such Person as it appears in the
Securitization Bond Register as of the applicable Record Date without
requiring that this Class A-1 Securitization Bond be submitted for notation
of payment. Any reduction in the principal amount of this Class A-1
Securitization Bond (or any one or more predecessor to such Securitization
Bond) effected by any payments made on any Payment Date shall be binding
upon all future Holders of this Class A-1 Securitization Bond and of any
Class A-1 Securitization Bond issued upon the registration of transfer
hereof or in exchange hereof or in lieu hereof, whether or not noted
hereon. If funds are expected to be available, as provided in the
Indenture, for payment in full of the then remaining unpaid principal
amount of this Class A-1 Securitization Bond on a Payment Date, then the
Trustee, in the name of and on behalf of the Issuer, will notify the Person
who was the Registered Holder hereof as of the second preceding Record Date
to such Payment Date by notice mailed no later than five days prior to such
final Payment Date and shall specify that such final installment will be
payable to the Registered Holder hereof as of the Record Date immediately
preceding such final Payment Date and only upon presentation and surrender
of this Class A-1 Securitization Bond and shall specify the place where
this Series 2001-1, Class A-1 Securitization Bond may be presented and
surrendered for payment of such installment.
The Issuer shall pay interest on overdue installments of interest
on this Class A-1 Securitization Bond at the Interest Rate for Class A-1 to
the extent lawful.
As provided in the Indenture, the Class A-1 Securitization Bonds
may be redeemed, in whole, but not in part, in certain circumstances as
provided in Section 8(b) of the Series Supplement and Section 10.01 of the
Indenture.
This Class A-1 Securitization Bond is a Securitization Bond as
such term is defined in the Customer Choice Act. Principal and interest due
and payable on this Securitization Bond are payable from and secured
primarily by Securitization Property created and established by the
Financing Order pursuant to the Customer Choice Act. Securitization
Property consists of the irrevocable right to impose and collect certain
non-bypassable charges (defined in the Customer Choice Act as
"Securitization Charges") to be included in electric utility bills of all
electric service retail customers of Consumers Energy Company, a Michigan
electric utility.
Under the Customer Choice Act, the State of Michigan pledges, for
the benefit and protection of the Holders of the Securitization Bonds,
other persons acting for the benefit of a Holder and Consumers, that it
will not take or permit any action that would impair the value of the
Securitization Property, reduce or alter, except as allowed under section
10k(3) of the Customer Choice Act with respect to periodic adjustments of
the Securitization Charges, or impair the Securitization Charges to be
imposed, collected, and remitted to the Trustee, until the principal,
interest and premium, and any other charges incurred and contracts to be
performed in connection with the Securitization Bonds have been paid and
performed in full, and that the Issuer is authorized to include this pledge
in any documentation relating to the Securitization Bonds.
As provided in the Indenture and subject to certain limitations
set forth therein, the transfer of this Class A-1 Securitization Bond may
be registered in the Securitization Bond Register upon surrender of this
Class A-1 Securitization Bond for registration of transfer at the office or
agency designated by the Issuer pursuant to the Indenture, duly endorsed
by, or accompanied by a written instrument of transfer in form satisfactory
to the Trustee duly executed by the Holder hereof or his attorney duly
authorized in writing, with such signature guaranteed by an Eligible
Guarantor Institution, and thereupon one or more new Class A-1
Securitization Bonds of any Authorized Denominations and in the same
aggregate initial principal amount will be issued to the designated
transferee or transferees. No service charge will be charged for any
registration of transfer or exchange of this Class A-1 Securitization Bond,
but the transferor may be required to pay a sum sufficient to cover any tax
or other governmental charge that may be imposed in connection with any
registration of transfer or exchange.
Prior to the due presentment for registration of transfer of this
Class A-1 Securitization Bond, the Issuer, the Trustee and any agent of the
Issuer or the Trustee may treat the Person in whose name this Class A-1
Securitization Bond is registered (as of the day of determination) as the
owner hereof for the purpose of receiving payments of principal of and
interest on this Class A-1 Securitization Bond and for all other purposes
whatsoever, whether or not this Class A-1 Securitization Bond may be
overdue, and neither the Issuer, the Trustee nor any such agent shall be
affected by notice to the contrary.
The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Issuer and the rights of the Holders of the
Securitization Bonds under the Indenture at any time by the Issuer with the
consent of the Holders of Securitization Bonds representing a majority of
the Outstanding Amount of all Securitization Bonds at the time Outstanding
of each Series or Class to be affected and upon satisfaction of the Rating
Agency Condition. The Indenture also contains provisions permitting the
Holders of Securitization Bonds representing specified percentages of the
Outstanding Amount of the Securitization Bonds of all Series, on behalf of
the Holders of all the Securitization Bonds, to waive compliance by the
Issuer with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences. Any such consent or waiver by
the Holder of this Class A-1 Securitization Bond (or any one of more
predecessors of such Securitization Bonds) shall be conclusive and binding
upon such Holder and upon all future Holders of this Class A-1
Securitization Bond and of any Class A-1 Securitization Bond issued upon
the registration of transfer hereof or in exchange hereof or in lieu hereof
whether or not notation of such consent or waiver is made upon this Class
A-1 Securitization Bond. The Indenture also permits the Trustee to amend or
waive certain terms and conditions set forth in the Indenture without the
consent of Holders of the Securitization Bonds issued thereunder.
The term "Issuer" as used in this Series 2001-1, Class A-1
Securitization Bond includes any successor to the Issuer under the
Indenture.
The Issuer is permitted by the Indenture, under certain
circumstances, to merge or consolidate, subject to the rights of the
Trustee and the Holders of Securitization Bonds under the Indenture.
The Class A-1 Securitization Bonds are issuable only in registered
form in Authorized Denominations as provided in the Indenture and the
Series Supplement, subject to certain limitations therein set forth.
This Class A-1 Securitization Bond and the Indenture shall be
construed in accordance with the laws of the State of Michigan, without
reference to its conflict of law provisions, and the obligations, rights
and remedies of the parties hereunder and thereunder shall be determined in
accordance with such laws.
No reference herein to the Indenture and no provision of this
Class A-1 Securitization Bond or of the Indenture shall alter or impair the
obligation of the Issuer, which is absolute and unconditional, to pay the
principal of and interest on this Class A-1 Securitization Bond at the
times and rate and in the currency herein prescribed.
ASSIGNMENT
Social Security or taxpayer I.D. or other identifying number of assignee:
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto ___
(name and address of assignee)
the within Class A-1 Securitization Bond and all rights thereunder, and
hereby irrevocably constitutes and appoints
(name and address of appointee)
attorney, to transfer said Class A-1 Securitization Bond on the books kept
for registration thereof, with full power of substitution in the premises.
Dated:
*
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Signature Guaranteed:
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* NOTE: The signature to this assignment must correspond with the
name of the registered owner as it appears on the face of the
within Class A-1 Securitization Bond in every particular, without
alteration, enlargement or any change whatsoever.