eTrade 2005 Annual Report Download - page 422

option of the Issuer. The amount of any sinking fund payments not so applied or allocated to the redemption of Securities of such
series shall be added to the next cash sinking fund payment for such series and, together with such payment, shall be applied in
accordance with the provisions of this Section. Any and all sinking fund moneys held on the stated maturity date of the Securities of
any particular series (or earlier, if such maturity is accelerated), which are not held for the payment or redemption of particular
Securities of such series shall be applied, together with other moneys, if necessary, sufficient for the purpose, to the payment of the
principal of, and interest on, the Securities of such series at maturity.
On or before each sinking fund payment date, the Issuer shall pay to the Trustee in cash or shall otherwise provide for the payment of
all interest accrued to the date fixed for redemption on Securities to be redeemed on the next following sinking fund payment date.
The Trustee shall not redeem or cause to be redeemed any Securities of a series with sinking fund moneys or give any notice of
redemption of Securities for such series by operation of the sinking fund during the continuance of a default in payment of interest on
such Securities or of any Default except that, where the giving of notice of redemption of any Securities shall theretofore have been
made, the Trustee shall redeem or cause to be redeemed such Securities, provided that it shall have received from the Issuer a sum
sufficient for such redemption. Except as aforesaid, any moneys in the sinking fund for such series at the time when any such default
or Default shall occur, and any moneys thereafter paid into the sinking fund, shall, during the continuance of such default or Default,
be deemed to have been collected under Article 5 and held for the payment of all such Securities. In case such Default shall have been
waived as provided in Section5.10 or the default cured on or before the sixtieth day preceding the sinking fund payment date in any
year, such moneys shall thereafter be applied on the next succeeding sinking fund payment date in accordance with this Section to the
redemption of such Securities.
ARTICLE 13
S
UBORDINATION
Section13.01
. Securities and Coupons Subordinated to Senior Indebtedness.
The Issuer covenants and agrees, and each Holder of a
Security or Coupon, by his acceptance thereof, likewise covenants and agrees, that the indebtedness represented by the Securities
and any Coupons and the payment of the principal of and interest on each and all of the Securities and of any Coupons is hereby
expressly subordinated, to the extent and in the manner hereinafter set forth, in right of payment to the prior payment in full of Senior
Indebtedness.
In the event (a)of any insolvency or bankruptcy proceedings or any receivership, liquidation, reorganization or other similar
proceedings in respect of
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