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Klartext | Standby Bond Purchase Agreement
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Standby Bond Purchase Agreement

Standby Bond Purchase Agreement

The remarketing agent, in his or her individual capacity, may also create a market for bonds by regularly buying and selling bonds on his own account, except in combination with an optional or mandatory offer and remarketing. These purchases and sales may be less than or less than the nominal value. However, the remarketing agent is not required to make a deal for the bonds, either in his or her individual capacity or as a remarketing agent. The remarketing agent may also sell any bonds he has purchased on his own account, or enter into derivatives transactions or other agreements with related companies or others, in order to reduce his exposure to such obligations. In cases where the remarketing agent`s parent company or related business is the insurance bank or the standby bond buyer, this fact may influence the remarketing agent`s individual decisions regarding the purchase, maintenance, submission and/or sale of bonds. The purchase of bonds by the remarketing agent on his own account may give the impression that there is more demand and liquidity in the market for the bonds than would be the case if the remarketing agent did not buy bonds in this way. The practices described above may also have the effect of reducing the supply of bonds in the case of remarketing. The songwriter derives the proceeds from this sale and makes a profit based on the difference between the price at which he bought the bonds from the issuer and the price at which he sells the bonds to fixed-income investors. Under the Remarketing Agreement, the Remarketing Agent generally agrees to do its best to determine the applicable interest rate which, at its discretion, is the lowest interest rate that would allow the sale of the vrdo interest rate at the prevailing interest rate at the nominal point plus accrued interest, if any, on the date of fixing the applicable interest rates. The interest rate reflects, among other things, the level of market demand for VRDO (including whether the remarketing agent is willing to buy vrdo on their own account). . .

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