1. Maturities will be not more than 30 years from the date of issue, with the expectation that the maturity dates can be from 1 to 30 years, depending upon market conditions. 2. Interest rates will be determined by market conditions. 3. No taxes on Debt Securities are assumed by issuer. 4. The Debt Securities will be unsecured. 5. The Debt Securities will have the same callability and redemption features that Capital Corp. obtains in connection with its borrowings from which the proceeds of the loans are derived. 6. There are no maintenance and depreciation requirements unless the borrowings are made on a tax-free basis. 7. With regards to Sinking and Other Fund provisions, the Debt Securities will reflect whatever terms Capital Corp. can obtain from its lenders. Cal Am also proposes that it may obtain tax-exempt financing through Capital Corp. or directly through government entities. In general, each series of long-term Debt Securities is expected to have a maturity of between 1 and 30 years. Requested New Debt Securities Enhancement and Interest Rate Management Features In order to improve the terms and conditions of new debt securities issuances, lower the overall cost of new debt securities, and manage potential interest rate increases, Cal Am requests authority to utilize: put options; call option (call premium); sinking fund; hedging, including - fund today, price later strategies (such as long hedges, treasury options, interest rate swaps), price today, fund later strategies (including treasury locks, treasury options, interest rate swaps); spread locks; spread options; swaptions; caps and collars; credit enhancements; capital replacements; interest deferrals; and delayed drawdowns. Cal Am also requests that such debt securities enhancement and interest rate
1. Maturities will be not more than 30 years from the date of issue, with the expectation that the maturity dates can be from 1 to 30 years, depending upon market conditions. 2. Interest rates will be determined by market conditions. 3. No taxes on Debt Securities are assumed by issuer. 4. The Debt Securities will be unsecured. 5. The Debt Securities will have the same callability and redemption features that Capital Corp. obtains in connection with its borrowings from which the proceeds of the loans are derived. 6. There are no maintenance and depreciation requirements unless the borrowings are made on a tax-free basis. 7. With regards to Sinking and Other Fund provisions, the Debt Securities will reflect whatever terms Capital Corp. can obtain from its lenders. Cal Am also proposes that it may obtain tax-exempt financing through Capital Corp. or directly through government entities. In general, each series of long-term Debt Securities is expected to have a maturity of between 1 and 30 years. Requested New Debt Securities Enhancement and Interest Rate Management Features In order to improve the terms and conditions of new debt securities issuances, lower the overall cost of new debt securities, and manage potential interest rate increases, Cal Am requests authority to utilize: put options; call option (call premium); sinking fund; hedging, including - fund today, price later strategies (such as long hedges, treasury options, interest rate swaps), price today, fund later strategies (including treasury locks, treasury options, interest rate swaps); spread locks; spread options; swaptions; caps and collars; credit enhancements; capital replacements; interest deferrals; and delayed drawdowns. Cal Am also requests that such debt securities enhancement and interest rate