LISTING SUPPLEMENT $189000000 Class A-1 Notes $342100000 ...
LISTING SUPPLEMENT $189000000 Class A-1 Notes $342100000 ...
LISTING SUPPLEMENT $189000000 Class A-1 Notes $342100000 ...
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calculations for the class A-IO-1 notes<br />
are based on 30/360.<br />
• The rate of interest on the class B<br />
notes for the initial interest period will<br />
be determined by the underwriters.<br />
For each other auction period, the<br />
interest rate for the class B notes will<br />
be the least of:<br />
(1) The rate determined pursuant to<br />
the auction procedures; and<br />
(2) The maximum rate, which is equal<br />
to the least of:<br />
• the LIBOR rate for a<br />
comparable period plus initially<br />
a margin of 2.50%;<br />
• 17%; and<br />
• the maximum rate permitted by<br />
law.<br />
Interest calculations for the class B notes<br />
are based on actual/365 or 366, as<br />
applicable.<br />
After issuance of the notes, you may<br />
obtain the current interest rates for the<br />
notes from the administrator’s website at<br />
www.firstmarblehead.com, the indenture<br />
trustee’s website at<br />
https://trustinvestorreporting.usbank.com/<br />
or by telephone from the indenture trustee<br />
at (866) 252-4360.<br />
Principal Payments<br />
Principal payments on the notes will be<br />
made or allocated on each quarterly<br />
distribution date, to the extent of available<br />
funds, in an amount equal to the principal<br />
distribution amount.<br />
For each quarterly distribution date, the<br />
principal distribution amount is generally<br />
equal to the amount necessary, so that<br />
after distributing such amount to the<br />
notes, the ratio, expressed as a percentage,<br />
of (a) the sum of the pool balance plus the<br />
pre-funded amount for the quarterly<br />
distribution date plus amounts on deposit<br />
in the reserve account, the future<br />
distribution account and the collection<br />
account (excluding funds on deposit in the<br />
TERI pledge fund) to (b) the outstanding<br />
principal amount of the notes, would<br />
equal at least 103%.<br />
On each quarterly distribution date<br />
occurring on and after either:<br />
(a) The quarterly distribution date on<br />
which the outstanding principal<br />
balance of the trust student loans is<br />
equal to or less than 10% of the sum of<br />
the aggregate principal balance of the<br />
initial trust student loans and the<br />
additional student loans acquired with<br />
funds in the pre-funding account; or<br />
(b) A TERI Trigger Event (as defined in<br />
the glossary);<br />
all amounts remaining in the collection<br />
account after clause 14 below under<br />
priorities for distribution on quarterly<br />
distribution dates will be distributed as<br />
principal to the noteholders.<br />
We refer to the distribution date described<br />
in clause (a) as the 10% pool balance<br />
distribution date.<br />
Principal will not be paid to a class of<br />
class B notes on a quarterly distribution<br />
date unless it is also an auction rate note<br />
interest payment date for that class of<br />
class B notes. Instead, principal will be<br />
allocated to the applicable class. Principal<br />
allocated but not paid to the class B notes<br />
on a quarterly distribution date will be<br />
deposited in the future distribution<br />
account and then paid on the applicable<br />
auction rate note interest payment date.<br />
S-4