Document:

ex4_20.htm

Exhibit 4.20

Execution Version 

 

Chugach Electric Association, Inc.

$90,000,000 4.20% First Mortgage Bonds, 2011 Series A

Due March 15, 2031

$185,000,000 4.75% First Mortgage Bonds, 2011 Series A

Due March 15, 2041

_____________

Bond Purchase Agreement

_____________

Dated January 21, 2011

  

  

  

 

Table of Contents

 

	Section	 Heading	 Page
	 	 	 	 
	Section 1.	
Authorization of 2011 Series A Bonds

	
1

	 	 	 	 
	Section 2.	
Sale and Purchase of 2011 Series A Bonds

	
2

	 	 	 	 
	Section 3.	
Closing

	
2

	 	 	 	 
	Section 4.	
Conditions to Closing

	
2

	 	 	 	 
	 	
Section 4.1.

	
Representations and Warranties

	
3

	 	
Section 4.2.

	
Performance; No Default

	
3

	 	
Section 4.3.

	
Compliance Certificates

	
3

	 	
Section 4.4.

	
Opinions of Counsel

	
3

	 	
Section 4.5.

	
Purchase Permitted by Applicable Law, Etc

	
3

	 	
Section 4.6.

	
Sale of Other Bonds

	
4

	 	
Section 4.7.

	
Payment of Special Counsel Fees

	
4

	 	
Section 4.8.

	
Private Placement Number

	
4

	 	
Section 4.9.

	
Changes in Corporate Structure

	
4

	 	
Section 4.10.

	
Funding Instructions

	
4

	 	
Section 4.11.

	
UCC Financing Statements and Indenture

	
4

	 	
Section 4.12.

	
Proceedings and Documents

	
5

	 	
Section 4.13.

	
Documents Required by Indenture; Basis for Authentication

	
5

	 	
Section 4.14.

	
Regulatory Approval

	
5

	 	
Section 4.15.

	
Consents Under Existing Debt Agreements

	
5

	 	
Section 4.16.

	
Acceptance of Appointment to Receive Service of Process

	
5

	 	 	 	 
	Section 5.	
Representations and Warranties of the Company

	
5

	 	 	 	 
	 	
Section 5.1.

	
Organization; Power and Authority

	
5

	 	
Section 5.2.

	
Authorization, Etc

	
6

	 	
Section 5.3.

	
Disclosure

	
6

	 	
Section 5.4.

	
Organization and Ownership of Shares of Subsidiaries

	
6

	 	
Section 5.5.

	
Financial Statements; Material Liabilities

	
6

	 	
Section 5.6.

	
Compliance with Laws, Other Instruments, Etc

	
6

	 	
Section 5.7.

	
Governmental Authorizations, Etc

	
7

	 	
Section 5.8.

	
Litigation; Observance of Statutes and Orders

	
7

	 	
Section 5.9.

	
Taxes

	
7

	 	
Section 5.10.

	
Title to Property; Leases

	
7

	 	
Section 5.11.

	
Licenses, Permits, Etc

	
8

	 	
Section 5.12.

	
Compliance with ERISA

	
8

	 	
Section 5.13.

	
Private Offering by the Company

	
9

	 	
Section 5.14.

	
Use of Proceeds; Margin Regulations

	
9

	 	
Section 5.15.

	
Existing Indebtedness

	
9

  

- i -

  

 

	 	
Section 5.16.

	
Foreign Assets Control Regulations, Etc

	
10

	 	
Section 5.17.

	
Status under Certain Statutes

	
10

	 	
Section 5.18.

	
Lien of Indenture

	
10

	 	
Section 5.19.

	
Filings

	
11

	 	 	 	 
	Section 6.	
Representations of the Purchasers

	
11

	 	 	 	 
	 	
Section 6.1.

	
Purchase for Investment

	
11

	 	
Section 6.2.

	
Source of Funds

	
11

	 	 	 	 
	Section 7.	
Information as to Company

	
13

	 	 	 	 
	 	
Section 7.1.

	
Financial and Business Information

	
13

	 	
Section 7.2.

	
Officer’s Certificate

	
16

	 	
Section 7.3.

	
Visitation

	
17

	 	 	 	 
	Section 8.	
Affirmative Covenants

	
17

	 	 	 	 
	 	
Section 8.1.

	
Compliance with Law

	
17

	 	
Section 8.2.

	
Insurance

	
17

	 	
Section 8.3.

	
Maintenance of Properties

	
17

	 	
Section 8.4.

	
Payment of Taxes

	
18

	 	
Section 8.5.

	
Corporate Existence, Etc

	
18

	 	
Section 8.6.

	
Books and Records

	
18

	 	 	 	 
	Section 9.	
Negative Covenants

	
18

	 	 	 	 
	 	
Section 9.1.

	
Transactions with Affiliates

	
18

	 	
Section 9.2.

	
Line of Business

	
19

	 	
Section 9.3.

	
Terrorism Sanctions Regulations

	
19

	 	 	 	 
	Section 10.	
Registration; Exchange; Substitution of 2011 Series A Bonds

	
19

	 	 	 	 
	Section 11.	
Payments on 2011 Series A Bonds

	
19

	 	 	 	 
	Section 12.	
Expenses, Etc

	
20

	 	 	 	 
	 	
Section 12.1.

	
Transaction Expenses

	
20

	 	
Section 12.2.

	
Survival

	
20

	 	 	 	 
	Section 13.	
Survival of Representations and Warranties; Entire Agreement

	
20

	 	 	 	 
	Section 14.	
Amendment and Waiver

	
21

	 	 	 	 
	 	
Section 14.1.

	
Requirements

	
21

	 	
Section 14.2.

	
Solicitation of Holders of 2011 Series A Bonds

	
21

	 	
Section 14.3.

	
Binding Effect, Etc

	
21

  

- ii -

  

 

	 	
Section 14.4.

	
2011 Series A Bonds Held by Company, Etc

	
22

	Section 15.	
Notices

	
22

	Section 16.	
Indemnification

	
23

	Section 17.	
Reproduction of Documents

	
23

	Section 18.	
Confidential Information

	
23

	Section 19.	
Substitution of Purchaser

	
24

	Section 20.	
Miscellaneous

	
24

	 	
Section 20.1.

	
Successors and Assigns

	
24

	 	
Section 20.2.

	
Payments Due on Non-Business Days

	
25

	 	
Section 20.3.

	
Accounting Terms

	
25

	 	
Section 20.4.

	
Severability

	
25

	 	
Section 20.5.

	
Construction, Etc

	
25

	 	
Section 20.6.

	
Counterparts

	
25

	 	
Section 20.7.

	
Governing Law

	
26

	 	
Section 20.8.

	
Jurisdiction and Process; Waiver of Jury Trial

	
26

  

- iii -

  

 

	
Schedule A

	
—

	
Information Relating to Purchasers

	  	  	  
	
Schedule B

	
—

	
Defined Terms

	  	  	  
	
Schedule 4.11

	
—

	
Collateral Filings

	  	  	  
	
Schedule 5.3

	
—

	
Disclosure Documents

	  	  	  
	
Schedule 5.5

	
—

	
Financial Statements

	  	  	  
	
Schedule 5.7

	
—

	
Governmental Authorizations

	  	  	  
	
Schedule 5.15

	
—

	
Existing Indebtedness

	  	  	  
	
Exhibit A

	
—

	
New Indenture

	  	  	  
	
Exhibit B

	
—

	
First Supplemental Indenture

	  	  	  
	
Exhibit 4.4(a)(i)

	
—

	
Form of Opinion of Special Counsel to the Company

	  	  	  
	
Exhibit 4.4(a)(ii)

	
—

	
Form of Opinion of General Counsel to the Company

	  	  	  
	
Exhibit 4.4(b)

	
—

	
Form of Opinion of Special Counsel to the Purchasers

	  	  	  

 

  

- iv -

  

Chugach Electric Association, Inc.

5601 Electron Drive

Anchorage, Alaska 99518

$90,000,000 4.20% First Mortgage Bonds, 2011 Series A

Due March 15, 2031

$185,000,000 4.75% First Mortgage Bonds, 2011 Series A

Due March 15, 2041

 

January 21, 2010

To Each of The Purchasers Listed in

Schedule A Hereto:

 

Ladies and Gentlemen:

 

Chugach Electric Association, Inc., an Alaska electric cooperative (the “Company”), agrees with each of the purchasers whose names appear at the end hereof (each, a “Purchaser” and, collectively, the “Purchasers”) as follows:

 

	
Section 1.

	
Authorization of 2011 Series A Bonds.

 

The Company is party to an Amended and Restated Indenture of Trust between the Company and U.S. Bank National Association, as Trustee, dated April 1, 2001 (the “Original Indenture”), pursuant to which the Company has issued and sold certain bonds.  The Company intends to amend and restate the Original Indenture by entering into a Second Amended and Restated Indenture of Trust between the Company and U.S. Bank National Association, as Trustee, substantially in the form attached hereto as Exhibit A, with such changes therein, if any as shall be approved by the Purchasers and the Company (the “New Indenture”).  The Company will authorize the issue and sale of (i) $90,000,000 4.20% First Mortgage Bonds, 2011 Series A Due March 15, 2031 (the “Tranche A Bonds”) and (ii) $185,000,000 4.75% First Mortgage Bonds, 2011 Series A Due March 15, 2041 (the “Tranche B Bonds” and together with the Tranche A Bonds, the “2011 Series A Bonds,” such term to include any such bonds issued in substitution therefor pursuant to the Indenture).  The 2011 Series A Bonds will be issued under and secured by the New Indenture, as further supplemented by the First Supplemental Indenture of Trust (such First Supplemental Indenture being referred to as the “First Supplemental Indenture”).  The First Supplemental Indenture will be substantially in the form attached hereto as Exhibit B, with such changes therein, if any, as shall be approved by the Purchasers and the Company.  The New Indenture, as further amended and supplemented from time to time, including by the First Supplemental Indenture, is hereinafter referred to as the “Indenture.”

 

Certain capitalized and other terms used in this Agreement are defined in Schedule B; and references to a “Schedule” or an “Exhibit” are, unless otherwise specified, to a Schedule or an Exhibit attached to this Agreement.  Terms used herein but not defined herein shall have the meanings set forth in the Indenture.

  

  

  

 

	
Section 2.

	
Sale and Purchase of 2011 Series A Bonds.

 

Subject to the terms and conditions of this Agreement, the Company will issue and sell to each Purchaser and each Purchaser will purchase from the Company, at the Closing provided for in Section 3, 2011 Series A Bonds of the tranche and in the principal amount specified opposite such Purchaser’s name in Schedule A at the purchase price of 100% of the principal amount thereof.  The Purchasers’ obligations hereunder are several and not joint obligations and no Purchaser shall have any liability to any Person for the performance or non-performance of any obligation by any other Purchaser hereunder.

 

	
Section 3.

	
Closing.

 

The sale and purchase of the 2011 Series A Bonds to be purchased by each Purchaser shall occur at the offices of Chapman and Cutler LLP, 111 West Monroe, Chicago, IL, at 10:00 a.m., Chicago time, at a closing (the “Closing”) on January 21, 2011 or on such other Business Day thereafter on or prior to January 24, 2011 as may be agreed upon by the Company and the Purchasers.  At the Closing the Company will deliver to each Purchaser the 2011 Series A Bonds to be purchased by such Purchaser in the form of a single 2011 Series A Bond of each tranche of the 2011 Series A Bonds being purchased by such Purchaser (or such greater number of 2011 Series A Bonds of the appropriate maturity in denominations of at least $100,000 as such Purchaser may request) dated the date of the Closing and registered in such Purchaser’s name (or in the name of its nominee), against delivery by such Purchaser to the Company or its order of immediately available funds in the amount of the purchase price therefor by wire transfer of immediately available funds for the account of the Company to U.S. Bank National Association (ABA #091000022), U.S. Bank Corporate Trust Account No. 180121167365) (Reference: Chugach Electric 2011A, Attn: Ryan Brennan).  If at the Closing the Company shall fail to tender such 2011 Series A Bonds to any Purchaser as provided above in this Section 3, or any of the conditions specified in Section 4 shall not have been fulfilled to such Purchaser’s satisfaction, such Purchaser shall, at its election, be relieved of all further obligations under this Agreement, without thereby waiving any rights such Purchaser may have by reason of such failure or such nonfulfillment.  The Company’s obligation to issue and sell to each Purchaser the Bonds to be sold to such Purchaser is subject to fulfillment, at Closing, of the condition set forth in Section 4.6.

 

	
Section 4.

	
Conditions to Closing.

 

Each Purchaser’s obligation to purchase and pay for the 2011 Series A Bonds to be sold to such Purchaser at the Closing is subject to the fulfillment to such Purchaser’s satisfaction, prior to or at the Closing, of the following conditions:

  

- 2 -

  

 

Section 4.1. Representations and Warranties.  The representations and warranties of the Company in the Financing Agreements shall be correct when made and at the time of the Closing.

 

Section 4.2. Performance; No Default.  The Company shall have performed and complied with all agreements and conditions contained in the Financing Agreements required to be performed or complied with by it prior to or at the Closing and after giving effect to the issue and sale of the 2011 Series A Bonds (and the application of the proceeds thereof as contemplated by Section 5.14) no Default or Event of Default shall have occurred and be continuing.

 

Section 4.3. Compliance Certificates.

 

(a) Officer’s Certificates.  The Company shall have delivered to such Purchaser an Officer’s Certificate, dated the date of the Closing, certifying (i) that the conditions specified in Section 4 of this Agreement have been fulfilled, (ii) an attached true, complete and correct copy of the Indenture, and (iii) attached true, complete and correct copies of all certificates and opinions delivered to the Trustee under the Indenture in connection with the issuance of the 2011 Series A Bonds under the Indenture.

 

(b)Secretary’s Certificate.  The Company shall have delivered to such Purchaser a certificate of its Secretary, Assistant Secretary, or other officer authorized by the Company to make such certification, dated the date of Closing, certifying as to the resolutions attached thereto and other corporate proceedings relating to the authorization, execution and delivery of the Financing Agreements.

 

(c)Secretary’s Certificate of the Trustee. The Trustee shall have delivered to such Purchaser a certificate of a corporate trust officer, dated the date of the Closing, certifying as to the resolutions attached thereto and the authorization, execution and delivery of the Indenture and Bonds.

 

Section 4.4. Opinions of Counsel.  Such Purchaser shall have received opinions in form and substance satisfactory to such Purchaser, dated the date of the Closing (a) from (i) Davis Wright Tremaine LLP, counsel for the Company, and (ii) Mark K. Johnson, General Counsel to the Company, covering the matters set forth in Exhibits 4.4(a)(i) and 4.4(a)(ii), respectively, and covering such other matters incident to the transactions contemplated hereby as such Purchaser or its counsel may reasonably request (and the Company hereby authorizes its counsel to deliver such opinion to the Purchasers) and (b) from Chapman and Cutler LLP, the Purchasers’ special counsel in connection with such transactions, substantially in the form set forth in Exhibit 4.4(b) and covering such other matters incident to such transactions as such Purchaser may reasonably request.

 

Section 4.5. Purchase Permitted by Applicable Law, Etc.  On the date of the Closing such Purchaser’s purchase of 2011 Series A Bonds shall (a) be permitted by the laws and regulations of each jurisdiction to which such Purchaser is subject, without recourse to provisions (such as section 1405(a)(8) of the New York Insurance Law) permitting limited investments by insurance companies without restriction as to the character of the particular investment, (b) not violate any applicable law or regulation (including, without limitation, Regulation T, U or X of the Board of Governors of the Federal Reserve System) and (c) not subject such Purchaser to any tax, penalty or liability under or pursuant to any applicable law or regulation, which law or regulation was not in effect on the date hereof.  If requested by such Purchaser, such Purchaser shall have received an Officer’s Certificate certifying as to such matters of fact as such Purchaser may reasonably specify to enable such Purchaser to determine whether such purchase is so permitted.

 

  

- 3 -

  

 

Section 4.6. Sale of Other Bonds.  Contemporaneously with the Closing the Company shall sell to each other Purchaser and each other Purchaser shall purchase the 2011 Series A Bonds to be purchased by it at the Closing as specified in Schedule A.

 

Section 4.7. Payment of Special Counsel Fees.  Without limiting the provisions of Section 12.1, the Company shall have paid on or before the Closing the fees, charges and disbursements of the Purchasers’ special counsel referred to in Section 4.4(b) to the extent reflected in a statement of such counsel rendered to the Company at least one Business Day prior to the Closing.

 

Section 4.8. Private Placement Number.  A Private Placement Number issued by Standard & Poor’s CUSIP Service Bureau (in cooperation with the SVO) shall have been obtained for each tranche of the 2011 Series A Bonds.

 

Section 4.9. Changes in Corporate Structure.  The Company shall not have changed its jurisdiction of incorporation or organization, as applicable, or been a party to any merger or consolidation or succeeded to all or any substantial part of the liabilities of any other entity, at any time following the date of the most recent financial statements referred to in Schedule 5.5.

 

Section 4.10. Funding Instructions.  At least three Business Days prior to the date of the Closing, each Purchaser shall have received written instructions signed by a Responsible Officer on letterhead of the Company confirming the information specified in Section 3 including (i) the name and address of the transferee bank, (ii) such transferee bank’s ABA number and (iii) the account name and number into which the purchase price for the 2011 Series A Bonds is to be deposited.

 

Section 4.11. UCC Financing Statements and Indenture.  The Company shall have caused (i) the New Indenture and the First Supplemental Indenture to have been recorded or filed at or prior to the Closing as a real estate mortgage in such manner and in all places in which recording is necessary to preserve and protect the lien of the Indenture upon any of the properties of the Company specifically described therein as subject to the lien of the Indenture, and which are described in Schedule 4.11, (ii) all financing statements under the UCC with respect to the personal property described in the granting clauses of the Indenture to have been filed in all places necessary to perfect and protect the security interest granted by the Indenture to the extent such security can be perfected by the filing of appropriate financing statements, and which are described in Schedule 4.11 (all such recordations and filings as provided in clauses (i) and (ii) of this Section 4.11 being referred to as the “Collateral Filings”), and (iii) all taxes, fees and other charges payable in connection with the execution, delivery and filing of the Indenture to have been paid in full.

 

  

- 4 -

  

 

Section 4.12. Proceedings and Documents.  All corporate and other proceedings in connection with the transactions contemplated by this Agreement and all documents and instruments incident to such transactions shall be satisfactory to such Purchaser and its special counsel, and such Purchaser and its special counsel shall have received all such counterpart originals or certified or other copies of such documents as such Purchaser or such special counsel may reasonably request.

 

Section 4.13. Documents Required by Indenture; Basis for Authentication.  The Company shall have furnished to the Trustee the resolutions, certificates, instruments, opinions and cash, if any, required to be delivered prior to or upon the issuance of the Bonds pursuant to the provisions of the Indenture.  The Company shall have requested the Trustee to, and the Trustee shall have, authenticated the Bonds pursuant to Article 5 of the Indenture.  The Company shall have complied with all other conditions with respect to the issuance and authentication of the Bonds imposed by the Indenture.

 

Section 4.14. Regulatory Approval.  Prior to the Closing, such Purchaser and its special counsel shall have received evidence, including, without limitation, an opinion of counsel, in form and substance satisfactory to such Purchaser and its special counsel, demonstrating that all approvals and authorizations of (a) the Federal Energy Regulatory Commission under the Federal Power Act and (b) the Regulatory Commission of Alaska under the laws of the State of Alaska which are required to be obtained in connection with the issuance of the Bonds, and the execution and delivery by the Company of, and the performance by the Company of its obligations under, the Financing Agreements have been duly obtained, validly issued and are in full force and effect and final, and all periods for appeal and rehearing by third parties have expired and all conditions contained in such approvals and authorizations which are to be fulfilled on or prior to the issuance of the Bonds have been fulfilled.

 

Section 4.15. Consents Under Existing Debt Agreements.  The Company shall have obtained all consents required under its existing debt agreements in connection with the Company’s incurrence of the Indebtedness under the Financing Agreements.

 

Section 4.16. Acceptance of Appointment to Receive Service of Process.  Such Purchaser shall have received evidence of the acceptance by CT Corporation System of the appointment and designation provided for by Section 20.8(b) (and the payment of all fees in respect thereof for the period from the date of the Closing to a date not earlier than the third anniversary date of the Closing).

 

	
Section 5.

	
Representations and Warranties of the Company.

 

The Company represents and warrants to each Purchaser that:

 

Section 5.1. Organization; Power and Authority.  The Company is an electric cooperative duly organized, validly existing and in good standing under the laws of the State of Alaska.  The Company has the corporate power and authority to own or hold under lease the properties it purports to own or hold under lease, to transact the business it transacts and proposes to transact, to execute and deliver the Financing Agreements and to perform the provisions hereof and thereof.

 

  

- 5 -

  

 

Section 5.2. Authorization, Etc.  The Financing Agreements have been duly authorized by all necessary corporate action on the part of the Company, and the Financing Agreements constitute, and upon execution and delivery thereof the 2011 Series A Bonds will constitute, a legal, valid and binding obligation of the Company enforceable against the Company in accordance with their terms, except as such enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

 

Section 5.3. Disclosure.  The Company, through its agent, Banc of America Securities LLC, has delivered to the Purchasers a copy of a Private Placement Memorandum, dated November 2010 (the “Memorandum”), relating to the transactions contemplated hereby.  This Agreement, the Memorandum and the documents, certificates or other writings delivered to the Purchasers by or on behalf of the Company in connection with the transactions contemplated hereby and identified in Schedule 5.3, and the financial statements listed in Schedule 5.5 (this Agreement, the Memorandum and such documents, certificates or other writings and such financial statements delivered to each Purchaser prior to November 18, 2010 being referred to, collectively, as the “Disclosure Documents”), taken as a whole, do not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein not misleading in light of the circumstances under which they were made.  Except as disclosed in the Disclosure Documents, since December 31, 2009, there has been no change in the financial condition, operations, business, or properties of the Company except changes that individually or in the aggregate would not reasonably be expected to have a Material Adverse Effect.

 

Section 5.4. No Subsidiaries.  The Company has no Subsidiaries.

 

Section 5.5. Financial Statements; Material Liabilities.  The Company has delivered to each Purchaser copies of the financial statements of the Company listed on Schedule 5.5.  All of said financial statements (including in each case the related schedules and notes) fairly present in all material respects the financial position of the Company as of the respective dates specified in such Schedule and the results of its operations and cash flows for the respective periods so specified and have been prepared in accordance with GAAP consistently applied throughout the periods involved except as set forth in the notes thereto (subject, in the case of any interim financial statements, to normal year-end adjustments).  The Company does not have any Material liabilities that are not disclosed on such financial statements or otherwise disclosed in the Disclosure Documents.

 

Section 5.6. Compliance with Laws, Other Instruments, Etc.  The execution, delivery and performance by the Company of the Financing Agreements will not (i) contravene, result in any breach of, or constitute a default under, or result in the creation of any Lien, other than the Lien created under the Indenture, in respect of any property of the Company under, any indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease, corporate charter or by-laws, or any other Material agreement or instrument to which the Company is bound or by which the Company or any of its properties may be bound or affected, (ii) conflict with or result in a breach of any of the terms, conditions or provisions of any order, judgment, decree, or ruling of any court, arbitrator or Governmental Authority applicable to the Company or (iii) violate any provision of any statute or other rule or regulation of any Governmental Authority applicable to the Company.

 

  

- 6 -

  

 

Section 5.7. Governmental Authorizations, Etc.  Except for the Collateral Filings contemplated by Section 4.11, no consent, approval or authorization of, or registration, filing or declaration with, any Governmental Authority is required in connection with the execution, delivery or performance by the Company of the Financing Agreements.

 

Section 5.8. Litigation; Observance of Statutes and Orders.  (a) There are no actions, suits, investigations or proceedings pending or, to the knowledge of the Company, threatened against or affecting the Company or any property of the Company in any court or before any arbitrator of any kind or before or by any Governmental Authority that, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect.

 

(b)The Company is not in default under any order, judgment, decree or ruling of any court, arbitrator or Governmental Authority or in violation of any applicable law, ordinance, rule or regulation (including without limitation Environmental Laws or the USA Patriot Act) of any Governmental Authority, which default or violation, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect.

 

Section 5.9. Taxes.  The Company has filed all income tax returns that are required to have been filed in any jurisdiction, and have paid all taxes shown to be due and payable on such returns and all other taxes and assessments payable by them, to the extent such taxes and assessments have become due and payable and before they have become delinquent, except for any taxes and assessments (i) the amount of which is not individually or in the aggregate Material or (ii) the amount, applicability or validity of which is currently being contested in good faith by appropriate proceedings and with respect to which the Company, as the case may be, has established adequate reserves in accordance with GAAP.  The Federal income tax liabilities of the Company have been finally determined (whether by reason of completed audits or the statute of limitations having run) for all fiscal years up to and including the fiscal year ended December 31, 2006.

 

Section 5.10. Title to Property; Leases.  The Company has good and sufficient title to its Material properties, including all such properties reflected in the most recent audited balance sheet referred to in Section 5.5 or purported to have been acquired by the Company after said date (except as sold or otherwise disposed of in the ordinary course of business), in each case free and clear of Liens (other than the Lien created by the Indenture) prohibited by this Agreement or the Indenture.  All Material leases are valid and subsisting and are in full force and effect in all material respects.

 

  

- 7 -

  

 

Section 5.11. Licenses, Permits, Etc.  The Company owns or possesses all licenses, permits, franchises, authorizations, patents, copyrights, proprietary software, service marks, trademarks and trade names, or rights thereto, that are Material, without known conflict with the rights of others, except for those conflicts that, individually or in the aggregate, would not have a Material Adverse Effect.

 

Section 5.12. Compliance with ERISA.  (a) The Company and each ERISA Affiliate have operated and administered each Plan in compliance with all applicable laws except for such instances of noncompliance as have not resulted in and could not reasonably be expected to result in a Material Adverse Effect.  Neither the Company nor any ERISA Affiliate has incurred any liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to “employee benefit plans” (as defined in section 3 of ERISA); and no event, transaction or condition has occurred or exists that would reasonably be expected to result in the incurrence of any such liability by the Company or any ERISA Affiliate, or in the imposition of any Lien on any of the rights, properties or assets of the Company or any ERISA Affiliate, in either case pursuant to Title I or IV of ERISA or to such penalty or excise tax provisions or to section 401(a)(29) or 412 of the Code or section 4068 of ERISA, other than such liabilities or Liens as would not be reasonably be expected individually or in the aggregate to have a Material Adverse Effect.

 

(b)    The present value of the aggregate benefit liabilities under each of the Plans (other than Multiemployer Plans) subject to Section 412 of the Code or Title IV of ERISA that is attributable to the employees of the Company and each of its ERISA Affiliates, determined as of the end of such Plan’s most recently ended plan year on the basis of the actuarial assumptions specified for funding purposes in such Plan’s most recent actuarial valuation report, did not exceed the aggregate current value of the assets of such Plan allocable to such benefit liabilities by more than $6,128,000 in the case of any single Plan and by more than $6,128,000 in the aggregate for all Plans.  The term “benefit liabilities” has the meaning specified in section 4001 of ERISA and the terms “current value” and “present value” have the meanings specified in section 3 of ERISA.

 

(c)    The Company and its ERISA Affiliates have not incurred withdrawal liabilities (and are not subject to contingent withdrawal liabilities) under section 4201 or 4204 of ERISA in respect of Multiemployer Plans that individually or in the aggregate are Material.

 

(d)    The expected postretirement benefit obligation (determined as of the last day of the Company’s most recently ended fiscal year in accordance with Financial Accounting Standards Board Statement No. 106, without regard to liabilities attributable to continuation coverage mandated by section 4980B of the Code) of the Company is not Material.

 

(e)    The execution and delivery of this Agreement and the issuance and sale of the 2011 Series A Bonds hereunder will not involve any transaction that is subject to the prohibitions of section 406 of ERISA or in connection with which a tax could be imposed pursuant to section 4975(c)(1)(A)-(D) of the Code.  The representation by the Company to each Purchaser in the first sentence of this Section 5.12(e) is made in reliance upon and subject to the accuracy of such Purchaser’s representation in Section 6.2 as to the sources of the funds used to pay the purchase price of the 2011 Series A Bonds to be purchased by such Purchaser.

 

  

- 8 -

  

 

Section 5.13. Private Offering by the Company.  Neither the Company nor anyone acting on its behalf has offered the 2011 Series A Bonds or any similar securities for sale to, or solicited any offer to buy any of the same from, or otherwise approached or negotiated in respect thereof with, any person other than the Purchasers and thirty-five (35) other Institutional Investors, each of which has been offered the 2011 Series A Bonds at a private sale for investment.  Neither the Company nor anyone acting on its behalf has taken, or will take, any action that would subject the issuance or sale of the 2011 Series A Bonds to the registration requirements of Section 5 of the Securities Act or to the registration requirements of any securities or blue sky laws of any applicable jurisdiction.

 

Section 5.14. Use of Proceeds; Margin Regulations.  The Company will apply the proceeds of the sale of the 2011 Series A Bonds to repay existing Indebtedness and for general corporate purposes of the Company. No part of the proceeds from the sale of the 2011 Series A Bonds hereunder will be used, directly or indirectly, for the purpose of buying or carrying any margin stock within the meaning of Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221), or for the purpose of buying or carrying or trading in any securities under such circumstances as to involve the Company in a violation of Regulation X of said Board (12 CFR 224) or to involve any broker or dealer in a violation of Regulation T of said Board (12 CFR 220).  Margin stock does not constitute more than 0.5% of the value of the assets of the Company and the Company does not have any present intention that margin stock will constitute more than 0.5% of the value of such assets.  As used in this Section, the terms “margin stock” and “purpose of buying or carrying” shall have the meanings assigned to them in said Regulation U.

 

Section 5.15. Existing Indebtedness.  (a) Except as described therein or the financial statements listed on Schedule 5.5, Schedule 5.15(a) sets forth a complete and correct list of all outstanding Indebtedness of the Company as of June 30, 2010 (including, except with respect to trade payables incurred in the ordinary course of business and not exceeding $5,000,000 in the aggregate, a description of the obligees, principal amount outstanding and collateral therefor, if any, and Guaranty thereof, if any), since which date there has been no Material change in the amounts, interest rates, sinking funds, installment payments or maturities of the Indebtedness of the Company.  The Company is not in default and no waiver of default is currently in effect in the payment of any principal or interest on any Indebtedness of the Company and no event or condition exists with respect to any Indebtedness of the Company the outstanding principal amount of which exceeds $5,000,000 that would permit (or that with notice or the lapse of time, or both, would permit) one or more Persons to cause such Indebtedness to become due and payable before its stated maturity or before its regularly scheduled dates of payment.

 

(b)    The Company is not a party to, or otherwise subject to any provision contained in, any instrument evidencing Indebtedness of the Company, any agreement relating thereto or any other agreement (including, but not limited to, its charter or other organizational document) which limits the amount of, or otherwise imposes restrictions on the incurring of, Indebtedness of the Company, except as specifically indicated in Schedule 5.15(b).

 

  

- 9 -

  

 

Section 5.16. Foreign Assets Control Regulations, Etc.  (a) Neither the sale of the 2011 Series A Bonds by the Company hereunder nor its use of the proceeds thereof will violate the Trading with the Enemy Act, as amended, or any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating thereto.

 

(b)    The Company (i) is not a Person described or designated in the Specially Designated Nationals and Blocked Persons List of the Office of Foreign Assets Control or in Section 1 of the Anti-Terrorism Order and (ii) does not engage in any dealings or transactions with any such Person in violation of applicable law.  The Company is in compliance, in all material respects, with the USA Patriot Act.

 

(c)    The Company shall not use any part of the proceeds from the sale of the 2011 Series A Bonds hereunder will be used, directly or indirectly, to knowingly make payments to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended, assuming in all cases that such Act applies to the Company.

 

Section 5.17. Status under Certain Statutes.  The Company is not subject to regulation (a) under the Investment Company Act of 1940, as amended, (b) under the Public Utility Holding Company Act of 2005, as amended, (c) under the ICC Termination Act of 1995, as amended, or (d) as a “public utility” under the Federal Power Act, as amended.

 

Section 5.18. Lien of Indenture.  (a) Upon execution, delivery and recordation of the New Indenture, the New Indenture will constitute a valid first priority Lien upon all of the properties and assets of the Company specifically or generally described or referred to in the Indenture as being subject to the Lien thereof, subject only to the exceptions referred to or permitted in the Indenture, and will create a first priority Lien upon all properties and assets acquired by the Company after the date of the New Indenture which are required to be subjected to the Lien of the Indenture, when acquired by the Company, subject only to the exceptions referred to or permitted in the Indenture and subject, further, as to real property, to the recordation of a supplement to the Indenture describing such after-acquired property (provided no intervening Liens shall have been filed or recorded against such property prior to the filing or recording of such supplement).  The descriptions of all such properties and assets contained in the granting clauses of, and exhibits to, the Indenture are correct and adequate for the purposes of the Indenture.

 

(b)    Contemporaneously with, or prior to, the Closing, (i) the New Indenture will be duly executed and delivered and will be duly filed or recorded as an indenture of mortgage of real estate, and any required filings with respect to personal property and fixtures subject to the Lien of the Indenture will be duly made in each place in which such recording or filing is required to protect, preserve and perfect the Lien of the Indenture, (ii) the First Supplemental Indenture will be duly executed and delivered and will be duly filed or recorded in each place in which the New Indenture has been filed or recorded and in all other places required to protect, preserve and perfect the Lien of the Indenture, and (iii) all taxes and recording and filing fees required to be paid with respect to the execution and delivery of the New Indenture and the First Supplemental Indenture, the filing of financing statements related thereto and similar documents and the issuance of the 2011 Series A Bonds thereunder will be paid by the Company.

 

  

- 10 -

  

 

(c)    At all times prior to and after the recording of the First Supplemental Indenture as provided in Section 5.18(b), the 2011 Series A Bonds, when executed by the Company, authenticated and delivered by the Trustee and issued by the Company to the Purchasers will be the legal, valid and binding obligations of the Company enforceable in accordance with their terms and the terms of the Indenture and entitled to the benefits of and secured by the Lien of the Indenture equally and ratably with all other Outstanding Secured Obligations.

 

(d)    As of the date hereof, the Company has no “Excludable Property” as defined in the Indenture.

 

Section 5.19. Filings.  No action, including any filings, registration or notice, is necessary in Alaska, or any other jurisdictions to ensure the legality, validity, enforceability, priority or perfection of the Financing Agreements except for the Collateral Filings set forth in Schedule 4.11, which will be filed or recorded on or prior to the date of Closing.  No other action, including any filing, registration or notice, is necessary in Alaska, or any other jurisdiction to establish or protect for the benefit of the Trustee and the holders of 2011 Series A Bonds, the security interest and Liens purported to be created under the Indenture and the other Financing Agreements, except in each case for the Collateral Filings and the filing of continuation statements with respect to any Collateral Filing at the time and in the manner provided under applicable law.

 

	
Section 6.

	
Representations of the Purchasers.

 

Section 6.1. Purchase for Investment.  Each Purchaser severally represents that it is purchasing the 2011 Series A Bonds for its own account or for one or more separate accounts maintained by such Purchaser or for the account of one or more pension or trust funds and not with a view to the distribution thereof, provided that the disposition of such Purchaser’s or their property shall at all times be within such Purchaser’s or their control.  Each Purchaser understands that the 2011 Series A Bonds have not been registered under the Securities Act and may be resold only if registered pursuant to the provisions of the Securities Act or if an exemption from registration is available, except under circumstances where neither such registration nor such an exemption is required by law, and that the Company is not required to register the 2011 Series A Bonds.

 

Section 6.2. Source of Funds.  Each Purchaser severally represents that at least one of the following statements is an accurate representation as to each source of funds (a “Source”) to be used by such Purchaser to pay the purchase price of the 2011 Series A Bonds to be purchased by such Purchaser hereunder:

 

(a)    the Source is an “insurance company general account” (as the term is defined in the United States Department of Labor’s Prohibited Transaction Exemption (“PTE”) 95-60) in respect of which the reserves and liabilities (as defined by the annual statement for life insurance companies approved by the National Association of Insurance Commissioners (the “NAIC Annual Statement”)) for the general account contract(s) held by or on behalf of any employee benefit plan together with the amount of the reserves and liabilities for the general account contract(s) held by or on behalf of any other employee benefit plans maintained by the same employer (or affiliate thereof as defined in PTE 95-60) or by the same employee organization in the general account do not exceed 10% of the total reserves and liabilities of the general account (exclusive of separate account liabilities) plus surplus as set forth in the NAIC Annual Statement filed with such Purchaser’s state of domicile; or

 

  

- 11 -

  

 

(b)    the Source is a separate account that is maintained solely in connection with such Purchaser’s fixed contractual obligations under which the amounts payable, or credited, to any employee benefit plan (or its related trust) that has any interest in such separate account (or to any participant or beneficiary of such plan (including any annuitant)) are not affected in any manner by the investment performance of the separate account; or

 

(c)    the Source is either (i) an “insurance company pooled separate account,” (within the meaning of PTE 90-1) or (ii) a “bank collective investment fund” (within the meaning of the PTE 91-38) and, except as disclosed by such Purchaser to the Company in writing pursuant to this clause (c), no employee benefit plan or group of plans maintained by the same employer or employee organization beneficially owns more than 10% of all assets allocated to such pooled separate account or collective investment fund; or

 

(d)    the Source constitutes assets of an “investment fund” (within the meaning of Part VI of PTE 84-14 (the “QPAM Exemption”)) managed by a “qualified professional asset manager” or “QPAM” (within the meaning of Part VI of the QPAM Exemption); no employee benefit plan’s assets that are included in such investment fund, when combined with the assets of all other employee benefit plans established or maintained by the same employer or by an “affiliate” (within the meaning of Section VI(c)(1) of the QPAM Exemption) of such employer or by the same employee organization and managed by such QPAM, exceed 20% of the total client assets managed by such QPAM, the conditions of Part I(c) and (g) of the QPAM Exemption are satisfied, neither the QPAM nor a person controlling or controlled by the QPAM (applying the definition of “control” in Section VI(e) of the QPAM Exemption) owns a 5% or more interest in the Company  and (i) the identity of such QPAM and (ii) the names of all employee benefit plans whose assets are included in such investment fund have been disclosed to the Company in writing pursuant to this clause (d); or

 

(e)    the Source constitutes assets of a “plan(s)” (within the meaning of Section IV of PTE 96-23 (the “INHAM Exemption”)) managed by an “in-house asset manager” or “INHAM” (within the meaning of Part IV of the INHAM Exemption); the conditions of Part I(a), (g) and (h) of the INHAM Exemption are satisfied; neither the INHAM nor a person controlling or controlled by the INHAM (applying the definition of “control” in Section IV(d) of the INHAM Exemption) owns a 5% or more interest in the Company and (i) the identity of such INHAM and (ii) the name(s) of the employee benefit plan(s) whose assets constitute the Source have been disclosed to the Company in writing pursuant to this clause (e); or

 

  

- 12 -

  

 

(f)    the Source is a governmental plan; or

 

(g)    the Source is one or more employee benefit plans, or a separate account or trust fund comprised of one or more employee benefit plans, each of which has been identified to the Company in writing pursuant to this clause (g); or

 

(h)    the Source does not include “assets” of any employee benefit plan, other than a plan exempt from the coverage of ERISA.

 

As used in this Section 6.2, the terms “employee benefit plan,” “governmental plan,” and “separate account” shall have the respective meanings assigned to such terms in section 3 of ERISA.

 

	
Section 7.

	
Information as to Company.

 

Section 7.1. Financial and Business Information.  The Company shall deliver to each holder of 2011 Series A Bonds that is an Institutional Investor:

 

(a)    Quarterly Statements — within 60 days (or such shorter period as is 15 days greater than the period applicable to the filing of the Company’s Quarterly Report on Form 10-Q (the “Form 10-Q”) with the SEC regardless of whether the Company is subject to the filing requirements thereof) after the end of each quarterly fiscal period in each fiscal year of the Company (other than the last quarterly fiscal period of each such fiscal year), duplicate copies of,

 

(i)    a consolidated balance sheet of the Company and its Subsidiaries as at the end of such quarter, and

 

(ii)    consolidated statements of income and changes in cash flows of the Company and its Subsidiaries, for such quarter and (in the case of the second and third quarters) for the portion of the fiscal year ending with such quarter,

 

setting forth in each case in comparative form the figures for the corresponding periods in the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP applicable to quarterly financial statements generally, and certified by a Senior Financial Officer as fairly presenting, in all material respects, the financial position of the companies being reported on and their results of operations and cash flows, subject to changes resulting from year-end adjustments;

 

(b)    Annual Statements — within 105 days (or such shorter period as is 15 days greater than the period applicable to the filing of the Company’s Annual Report on Form 10 K (the “Form 10 K”) with the SEC regardless of whether the Company is subject to the filing requirements thereof) after the end of each fiscal year of the Company, duplicate copies of,

 

  

- 13 -

  

 

(i)    a consolidated balance sheet of the Company and its Subsidiaries, as at the end of such year, and

 

(ii)    consolidated statements of income, changes in patronage capital and membership fees and cash flows of the Company and its Subsidiaries for such year,

 

setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP, and accompanied by an opinion thereon of independent public accountants of recognized national standing, which opinion shall state that such financial statements present fairly, in all material respects, the financial position of the companies being reported upon and their results of operations and cash flows and have been prepared in conformity with GAAP, and that the examination of such accountants in connection with such financial statements has been made in accordance with generally accepted auditing standards, and that such audit provides a reasonable basis for such opinion in the circumstances, provided that the delivery within the time period specified above of the Company’s Annual Report on Form 10-K for such fiscal year (together with the Company’s annual report to shareholders, if any, prepared pursuant to Rule 14a-3 under the Exchange Act) prepared in accordance with the requirements therefor and filed with the SEC shall be deemed to satisfy the requirements of this Section 7.1(b), and provided, further, that the Company shall be deemed to have made such delivery of such Form 10-K if it shall have timely made Electronic Delivery thereof;

 

(c)SEC and Other Reports — promptly upon their becoming available, one copy of (i) each financial statement, report, notice or proxy statement required to be sent by the Company or any Subsidiary to its principal lending banks as a whole (excluding information sent to such banks in the ordinary course of administration of a bank facility, such as information relating to pricing and borrowing availability) or to its public securities holders generally, and (ii) each regular or periodic report, each registration statement that shall have become effective (without exhibits except as expressly requested by such holder), and each final prospectus and all amendments thereto filed by the Company with the SEC or any Subsidiary;

 

(d)    Notice of Default or Event of Default — promptly, and in any event within five Business Days after a Responsible Officer becoming aware of the existence of any Default or Event of Default, a written notice specifying the nature and period of existence thereof and what action the Company is taking or proposes to take with respect thereto;

 

  

- 14 -

  

 

(e)    ERISA Matters — promptly, and in any event within five Business Days after a Responsible Officer becoming aware of any of the following, a written notice setting forth the nature thereof and the action, if any, that the Company or an ERISA Affiliate proposes to take with respect thereto:

 

(i)    with respect to any Plan, any reportable event, as defined in section 4043(c) of ERISA and the regulations thereunder, for which notice thereof has not been waived pursuant to such regulations as in effect on the date hereof; or

 

(ii)    the taking by the PBGC of steps to institute, or the threatening by the PBGC of the institution of, proceedings under section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan, or the receipt by the Company or any ERISA Affiliate of a notice from a Multiemployer Plan that such action has been taken by the PBGC with respect to such Multiemployer Plan; or

 

(iii)    any event, transaction or condition that could result in the incurrence of any liability by the Company or any ERISA Affiliate pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans, or in the imposition of any Lien on any of the rights, properties or assets of the Company or any ERISA Affiliate pursuant to Title I or IV of ERISA or such penalty or excise tax provisions, if such liability or Lien, taken together with any other such liabilities or Liens then existing, would reasonably be expected to have a Material Adverse Effect;

 

(f)    Supplemental Indentures — promptly, and in any event within five Business Days after the execution and delivery thereof, a copy of any indenture supplemental to the Indenture that the Company from time to time may hereafter execute and deliver which amends the Indenture in any respect;

 

(g)    Notices from Governmental Authority — promptly, and in any event within 30 days of receipt thereof, copies of any notice to the Company or any Subsidiary from any Federal or state Governmental Authority relating to any order, ruling, statute or other law or regulation that could reasonably be expected to have a Material Adverse Effect;

 

 (h)    Certain Notices Under the Indenture — true, correct and complete copies of any notices required to be delivered by the Company to such holder pursuant to the terms and provisions of the Indenture; and

 

(i)     Requested Information — with reasonable promptness, such other data and information relating to the business, operations, affairs, financial condition, assets or properties of the Company or any of its Subsidiaries (including, but without limitation, actual copies of the Company’s Form 10-Q and Form 10-K, if any) or relating to the ability of the Company to perform its obligations under any Financing Agreement as from time to time may be reasonably requested by such holder of 2011 Series A Bonds after a Default that is continuing.

 

  

- 15 -

  

 

All information required to be delivered by the Company pursuant to Section 7.1(a)-(c) shall be deemed to have been furnished if the Company shall have timely made the same available on the its website at www.chugachelectric.com and, substantially concurrently therewith (except in the case of the delivery of forms 10-K and 10-Q and any financial statements or other information contained therein, as to which no separate notification shall be necessary if such information has been posted on the Company’s website within the deadlines specified in Section 7.1(a) and Section 7.1(b)), shall have notified each holder of 2011 Series A Bonds that such information has been posted on its website and such information is fully accessible (such availability and notice thereof being referred to as “Electronic Delivery”), provided, that if any holder of 2011 Series A Bonds is unable to access the Company’s website the Company agrees to provide such holder with paper or electronic copies of such information required to be furnished pursuant to Section 7.1(a)-(c) promptly following notice (and thereafter so long as such notice remains in effect) from such holder.

 

Section 7.2. Officer’s Certificate.  Each set of financial statements delivered to a holder of 2011 Series A Bonds pursuant to Section 7.1(a) shall be accompanied by a certificate of a Senior Financial Officer setting forth (which, in the case of Electronic Delivery of any such financial statements, shall be by separate concurrent delivery of such certificate to each holder of 2011 Series A Bonds):

 

(a)    Covenant Compliance — (i) the information (including detailed calculations) required in order to establish whether the Company was in compliance with the requirements of Sections 14.14 and 14.15 of the Indenture during the annual period covered by the statements then being furnished and (ii) to the extent the Company issued Additional Obligations (as defined in the Indenture) under the Indenture during the period covered by the statements being furnished, any calculations that the Company provided to the Trustee (as defined in the Indenture) to show compliance with the Indenture in connection with the issuance of the Additional Obligations (including with respect to each such Section, where applicable, the calculations of the maximum or minimum amount, ratio or percentage, as the case may be, permissible under the terms of such Sections, and the calculation of the amount, ratio or percentage then in existence); and

 

(b)    Event of Default — a statement that such Senior Financial Officer has reviewed the relevant terms hereof and of the Indenture and has made, or caused to be made, under his or her supervision, a review of the transactions and conditions of the Company and its Subsidiaries from the beginning of the annual period covered by the statements then being furnished to the date of the certificate and that such review shall not have disclosed the existence during such period of any condition or event that constitutes a Default or an Event of Default or, if any such condition or event existed or exists, specifying the nature and period of existence thereof and what action the Company shall have taken or proposes to take with respect thereto.

  

- 16 -

  

 

Section 7.3. Visitation.  The Company shall permit the representatives of each holder of 2011 Series A Bonds that is an Institutional Investor:

 

(a)    No Default — if no Default or Event of Default then exists, at the expense of such holder and upon reasonable prior notice to the Company, to visit the principal executive office of the Company, to discuss the affairs, finances and accounts of the Company and its Subsidiaries with the Company’s officers, and, with the consent of the Company (which consent will not be unreasonably withheld) to visit the other offices and properties of the Company and each Subsidiary, all at such reasonable times and as often as may be reasonably requested in writing (but no Investor shall have the right to make such a request more frequently than once in any 12-month period); and

 

(b)    Default — if a Default or Event of Default then exists, at the expense of the Company to visit and inspect any of the offices or properties of the Company or any Subsidiary, to examine all their books of account and other relevant records, reports and documents, to make copies or extracts therefrom, and to discuss their respective affairs, finances and accounts with their respective officers and independent public accountants (and by this provision the Company authorizes said accountants to discuss the affairs, finances and accounts of the Company and its Subsidiaries if a Default or Event of Default then exists), all at such times and as often as may be reasonably requested in writing.

 

	
Section 8.

	
Affirmative Covenants.

 

The Company covenants that so long as any of the 2011 Series A Bonds are outstanding:

 

Section 8.1. Compliance with Law.  Without limiting Section 9.2, the Company will and will cause each of its Subsidiaries to comply with all laws, ordinances or governmental rules or regulations to which each of them is subject, including, without limitation, ERISA, the USA Patriot Act and Environmental Laws, and will obtain and maintain in effect all licenses, certificates, permits, franchises and other governmental authorizations necessary to the ownership of their respective properties or to the conduct of their respective businesses, in each case to the extent necessary to ensure that non-compliance with such laws, ordinances or governmental rules or regulations or failures to obtain or maintain in effect such licenses, certificates, permits, franchises and other governmental authorizations would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.

 

Section 8.2. Insurance.  The Company will and will cause each of its Subsidiaries to maintain, with financially sound and reputable insurers, insurance with respect to their respective properties and businesses against such casualties and contingencies, of such types, on such terms and in such amounts (including deductibles, co-insurance and self-insurance, if adequate reserves are maintained with respect thereto) as is customary in the case of entities of established reputations engaged in the same or a similar business and similarly situated.

 

Section 8.3. Maintenance of Properties.  The Company will and will cause each of its Subsidiaries to maintain and keep, or cause to be maintained and kept, their respective properties in good repair, working order and condition (other than ordinary wear and tear), so that the business carried on in connection therewith may be properly conducted at all times, provided that this Section shall not prevent the Company or any Subsidiary from discontinuing the operation and the maintenance of any of its properties if such discontinuance is desirable in the conduct of its business and the Company has concluded that such discontinuance would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

  

- 17 -

  

 

Section 8.4. Payment of Taxes.  The Company will and will cause each of its Subsidiaries to file all income tax or similar tax returns required to be filed in any jurisdiction and to pay and discharge all taxes shown to be due and payable on such returns and all other taxes, assessments, governmental charges, or levies payable by any of them, to the extent the same have become due and payable and before they have become delinquent, provided that neither the Company nor any Subsidiary need not pay any such tax, assessment, charge or levy if (i) the amount, applicability or validity thereof is contested by the Company or such Subsidiary on a timely basis in good faith and in appropriate proceedings, and the Company or a Subsidiary has established adequate reserves therefor in accordance with GAAP on the books of the Company or such Subsidiary or (ii) the nonpayment of all such taxes, assessments, charges and levies in the aggregate would not reasonably be expected to have a Material Adverse Effect.

 

Section 8.5. Corporate Existence, Etc.  The Company will at all times preserve and keep in full force and effect its corporate existence and the corporate existence.  The Company will at all times preserve and keep in full force and effect the corporate existence of each of its Subsidiaries (unless merged into the Company or a wholly owned Subsidiary) and all rights and franchises of the Company and its Subsidiaries unless, in the good faith judgment of the Company, the termination of or failure to preserve and keep in full force and effect such corporate existence, right or franchise would not, individually or in the aggregate, have a Material Adverse Effect.

 

Section 8.6. Books and Records. The Company will and will cause each of its Subsidiaries to, maintain proper books of record and account in conformity with GAAP and all applicable requirements of any Governmental Authority having legal or regulatory jurisdiction over the Company or such Subsidiary, as the case may be.

 

	
Section 9.

	
Negative Covenants.

 

The Company covenants that so long as any of the 2011 Series A Bonds are outstanding:

 

Section 9.1. Transactions with Affiliates.  The Company will not and will not permit any Subsidiary to enter into directly or indirectly any Material transaction or Material group of related transactions (including without limitation the purchase, lease, sale or exchange of properties of any kind or the rendering of any service) with any Affiliate (other than the Company or another Subsidiary), except pursuant to the reasonable requirements of the Company’s or such Subsidiary’s business and upon fair and reasonable terms no less favorable to the Company or such Subsidiary than would be obtainable in a comparable arm’s-length transaction with a Person not an Affiliate.

 

  

- 18 -

  

 

Section 9.2. Line of Business.  The Company will not and will not permit any Subsidiary to engage in any business if, as a result, the general nature of the business in which the Company and its Subsidiaries, taken as a whole, would then be engaged would be substantially changed from the general nature of the business in which the Company and its Subsidiaries, taken as a whole, are engaged on the date of this Agreement as described in the Memorandum.

 

Section 9.3. Terrorism Sanctions Regulations.  The Company will not and will not permit any Subsidiary to (a) become a Person described or designated in the Specially Designated Nationals and Blocked Persons List of the Office of Foreign Assets Control or in Section 1 of the Anti-Terrorism Order or (b) engage in any prohibited dealings or transactions with any Person known by any Responsible Officer to be a Person so described or designated, except pursuant to license or other lawful authority from OFAC or other competent U.S. government agency.  Each Purchaser agrees that, in making this covenant, the Company shall be entitled to assume that each Purchaser (i) is not a Person described or designated in the Specially Designated Nationals and Blocked Persons List of OFAC or in Section 1 of the Anti-Terrorism Order and (ii) does not engage in any prohibited dealings or transactions with any such Person except pursuant to license or other lawful authority from OFAC or other competent U.S. government agency, and (iii) is in compliance, in all material respects, with USA Patriot Act, to the extent applicable to such Purchaser or its Subsidiaries.

 

	
Section 10.

	
Registration; Exchange; Substitution of 2011 Series A Bonds.

 

The registration, exchange, replacement and transfer of the 2011 Series A Bonds, if any, shall be subject to the terms and provisions of the Indenture.

 

	
Section 11.

	
Payments on 2011 Series A Bonds.

 

So long as any Purchaser or its nominee shall be the holder of any 2011 Series A Bond, and notwithstanding anything contained in the Indenture or in such 2011 Series A Bond to the contrary, the Company will pay all sums becoming due on such 2011 Series A Bond for principal, make-whole amount or premium, if any, and interest by the method and at the address specified for such purpose below such Purchaser’s name in Schedule A, or by such other method or at such other address as such Purchaser shall have from time to time specified to the Company in writing for such purpose, without the presentation or surrender of such 2011 Series A Bond or the making of any notation thereon, except that upon written request of the Company made concurrently with or reasonably promptly after payment or prepayment in full of any 2011 Series A Bond, such Purchaser shall surrender such 2011 Series A Bond for cancellation, reasonably promptly after any such request, to the Company at its principal executive office or at the place of payment most recently designated by the Company pursuant to the Indenture.  Prior to any sale or other disposition of any 2011 Series A Bond held by a Purchaser or its nominee, such Purchaser will, at its election, either endorse thereon the amount of principal paid thereon and the last date to which interest has been paid thereon or surrender such 2011 Series A Bond to the Company in exchange for a new 2011 Series A Bond or 2011 Series A Bonds of the same maturity pursuant to Section 3.7 of the Indenture.  The Company will afford the benefits of this Section 11 to any Institutional Investor that is the direct or indirect transferee of any 2011 Series A Bond purchased by a Purchaser under this Agreement and that has made the same agreement relating to such 2011 Series A Bond as the Purchasers have made in this Section 11.

 

  

- 19 -

  

 

	
Section 12.

	
Expenses, Etc.

 

Section 12.1. Transaction Expenses.  Whether or not the transactions contemplated hereby are consummated, the Company will pay all reasonable costs and expenses (including reasonable attorneys’ fees of a special counsel and, if reasonably required by the Required Holders, local or other counsel) incurred by the Purchasers and each other holder of a 2011 Series A Bond in connection with such transactions and in connection with any amendments, waivers or consents under or in respect of any Financing Agreement (whether or not such amendment, waiver or consent becomes effective), including, without limitation:  (a) the reasonable costs and expenses incurred in enforcing or defending (or determining whether or how to enforce or defend) any rights under any Financing Agreement or in responding to any subpoena or other legal process or informal investigative demand issued in connection with any Financing Agreement, or by reason of being a holder of any 2011 Series A Bond, (b) the reasonable costs and expenses, including financial advisors’ fees, incurred in connection with the insolvency or bankruptcy of the Company or any Subsidiary or in connection with any work-out or restructuring of the transactions contemplated  by any Financing Agreement and (c) the costs and expenses incurred in connection with the initial filing of any Financing Agreement and all related documents and financial information with the SVO, provided that such costs and expenses under this clause (c) shall not exceed $3,000.  The Company will pay, and will save each Purchaser and each other holder of a 2011 Series A Bond harmless from, all claims in respect of any fees, costs or expenses if any, of brokers and finders (other than those, if any, retained by a Purchaser or other holder in connection with its purchase of the 2011 Series A Bonds).

 

Section 12.2. Survival.  The obligations of the Company under this Section 12 will survive the payment or transfer of any 2011 Series A Bond, the enforcement, amendment or waiver of any provision of any Financing Agreement, and the termination of any Financing Agreement.

 

	
Section 13.

	
Survival of Representations and Warranties; Entire Agreement.

 

All representations and warranties contained herein shall survive the execution and delivery of the Financing Agreements, the purchase or transfer by any Purchaser of any 2011 Series A Bond or portion thereof or interest therein and the payment of any 2011 Series A Bond, and may be relied upon by any subsequent holder of a 2011 Series A Bond, regardless of any investigation made at any time by or on behalf of such Purchaser or any other holder of a 2011 Series A Bond.  All statements contained in any certificate or other instrument required to be delivered by or on behalf of the Company pursuant to this Agreement shall be deemed representations and warranties of the Company under this Agreement.  Subject to the preceding sentence, the Financing Agreements embody the entire agreement and understanding between each Purchaser and the Company and supersede all prior agreements and understandings relating to the subject matter hereof.

 

  

- 20 -

  

 

	
Section 14.

	
Amendment and Waiver.

 

Section 14.1. Requirements.  This Agreement and the Bonds may be amended, and the observance of any term hereof or of the Bonds may be waived (either retroactively or prospectively), with (and only with) the written consent of the Company and the Required Holders, except that (a) no amendment or waiver of any of the provisions of Section 1, 2, 3, 4, 5, 6 or 19 hereof or any defined term (as it is used therein), will be effective as to any Purchaser unless consented to by such Purchaser in writing, and (b) no such amendment or waiver may, without the written consent of the holder of each 2011 Series A Bond at the time outstanding affected thereby, (i) change the percentage of the principal amount of the 2011 Series A Bonds the holders of which are required to consent to any such amendment or waiver or (ii) amend any of Sections 14 or 18.

 

Section 14.2.Solicitation of Holders of 2011 Series A Bonds.

 

(a)Solicitation. The Company will provide each holder of the 2011 Series A Bonds (irrespective of the amount of 2011 Series A Bonds then owned by it) with sufficient information, sufficiently far in advance of the date a decision is required, to enable such holder to make an informed and considered decision with respect to any proposed amendment, waiver or consent in respect of any of the provisions hereof or of the 2011 Series A Bonds.  The Company will deliver executed or true and correct copies of each amendment, waiver or consent effected pursuant to the provisions of this Section 14 to each holder of outstanding 2011 Series A Bonds promptly following the date on which it is executed and delivered by, or receives the consent or approval of, the requisite holders of 2011 Series A Bonds.

 

(b)Payment. The Company will not directly or indirectly pay or cause to be paid any remuneration, whether by way of supplemental or additional interest, fee or otherwise, or grant any security or provide other credit support, to any holder of 2011 Series A Bonds as consideration for or as an inducement to the entering into by any holder of 2011 Series A Bonds of any waiver or amendment of any of the terms and provisions hereof unless such remuneration is concurrently paid, or security is concurrently granted or other credit support concurrently provided, on the same terms, ratably to each holder of 2011 Series A Bonds then outstanding even if such holder did not consent to such waiver or amendment.

 

(c)Consent in Contemplation of Transfer.  Any consent made pursuant to this Section 14.2 by the holder of any 2011 Series A Bond that has transferred or has agreed to transfer such 2011 Series A Bond to the Company, any Subsidiary or any Affiliate of the Company and has provided or has agreed to provide such written consent as a condition to such transfer shall be void and of no force or effect except solely as to such holder, and any amendments effected or waivers granted or to be effected or granted that would not have been or would not be so effected or granted but for such consent (and the consents of all other holders of 2011 Series A Bonds that were acquired under the same or similar conditions) shall be void and of no force or effect except solely as to such transferring holder.

 

Section 14.3. Binding Effect, Etc. Any amendment or waiver consented to as provided in this Section 14 applies equally to all holders of 2011 Series A Bonds and is binding upon them and upon each future holder of any 2011 Series A Bond and upon the Company without regard to whether such 2011 Series A Bond has been marked to indicate such amendment or waiver.  No such amendment or waiver will extend to or affect any obligation, covenant, agreement, Default or Event of Default not expressly amended or waived or impair any right consequent thereon.  No course of dealing between the Company and the holder of any 2011 Series A Bond nor any delay in exercising any rights hereunder or under any 2011 Series A Bond shall operate as a waiver of any rights of any holder of such 2011 Series A Bond.  As used herein, the term “this Agreement” and references thereto shall mean this Agreement as it may from time to time be amended or supplemented.

 

  

- 21 -

  

 

Section 14.4. 2011 Series A Bonds Held by Company, etc. Solely for the purpose of determining whether the holders of the requisite percentage of the aggregate principal amount of 2011 Series A Bonds then outstanding approved or consented to any amendment, waiver or consent to be given under this Agreement or the 2011 Series A Bonds, or have directed the taking of any action provided herein or in the 2011 Series A Bonds to be taken upon the direction of the holders of a specified percentage of the aggregate principal amount of 2011 Series A Bonds then outstanding, 2011 Series A Bonds directly or indirectly owned by the Company or any of its Affiliates shall be deemed not to be outstanding.

 

	
Section 15.

	
Notices.

 

All notices and communications provided for hereunder shall be in writing and sent (a) by telecopy if the sender on the same day sends a confirming copy of such notice by a recognized overnight delivery service (charges prepaid), or (b) by registered or certified mail with return receipt requested (postage prepaid), or (c) by a recognized overnight delivery service (with charges prepaid).  Any such notice must be sent:

 

(i)if to any Purchaser or its nominee, to such Purchaser or nominee at the address specified for such communications in Schedule A, or at such other address as such Purchaser or nominee shall have specified to the Company in writing,

 

(ii)if to any other holder of any 2011 Series A Bond, to such holder at such address as such other holder shall have specified to the Company in writing,

 

(iii)if to the Company, to the Company at its address set forth at the beginning hereof to the attention of Chief Financial Officer, or at such other address as the Company shall have specified to the holder of each 2011 Series A Bond in writing, or

 

(iv)if to the Trustee, to the Trustee at the address specified in the Indenture or at such other address as the Trustee shall have specified to the holder of each Bond in writing.

 

Notices under this Section 15 will be deemed given only when actually received.

 

  

- 22 -

  

 

	
Section 16.

	
Indemnification.

 

The Company hereby agrees to indemnify and hold the Purchasers harmless from, against and in respect of any and all loss, liability and expense (including reasonable attorneys’ fees) arising from any misrepresentation or nonfulfillment of any undertaking on the part of the Company under this Agreement.  The indemnification obligations of the Company under this Section 16 shall survive the execution and delivery of this Agreement, the delivery of the 2011 Series A Bonds to the Purchasers and the consummation of the transactions contemplated herein.

 

	
Section 17.

	
Reproduction of Documents.

 

This Agreement and all documents relating thereto, including, without limitation, (a) consents, waivers and modifications that may hereafter be executed, (b) documents received by any Purchaser at the Closing (except the 2011 Series A Bonds themselves), and (c) financial statements, certificates and other information previously or hereafter furnished to any Purchaser, may be reproduced by such Purchaser by any photographic, photostatic, electronic, digital, or other similar process and such Purchaser may destroy any original document so reproduced.  The Company agrees and stipulates that, to the extent permitted by applicable law, any such reproduction shall be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is in existence and whether or not such reproduction was made by such Purchaser in the regular course of business) and any enlargement, facsimile or further reproduction of such reproduction shall likewise be admissible in evidence.  This Section 17 shall not prohibit the Company or any other holder of 2011 Series A Bonds from contesting any such reproduction to the same extent that it could contest the original, or from introducing evidence to demonstrate the inaccuracy of any such reproduction.

 

	
Section 18.

	
Confidential Information.

 

For the purposes of this Section 18, “Confidential Information” means information delivered to any Purchaser by or on behalf of the Company in connection with the transactions contemplated by or otherwise pursuant to this Agreement that is proprietary in nature and that was clearly marked or labeled or otherwise adequately identified when received by such Purchaser as being confidential information of the Company, provided that such term does not include information that (a) was publicly known or otherwise known to such Purchaser prior to the time of such disclosure, (b) subsequently becomes publicly known through no act or omission by such Purchaser or any person acting on such Purchaser’s behalf, (c) otherwise becomes known to such Purchaser other than through disclosure by the Company or (d) constitutes financial statements delivered to such Purchaser under Section 7.1 that are otherwise publicly available.  Each Purchaser will maintain the confidentiality of such Confidential Information in accordance with the procedures adopted by such Purchaser in good faith to protect its own confidential information and confidential information of third parties delivered to such Purchaser, provided that such Purchaser may deliver or disclose Confidential Information to (i) its directors, trustees, officers, employees, agents, attorneys and affiliates (to the extent such disclosure reasonably relates to the administration of the investment represented by its 2011 Series A Bonds), (ii) its financial advisors and other professional advisors who agree to hold confidential the Confidential Information substantially in accordance with the terms of this Section 18, (iii) any other holder of any 2011 Series A Bond, (iv) any Institutional Investor to which it sells or offers to sell such 2011 Series A Bond or any part thereof or any participation therein (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions of this Section 18), (v) any Person from which it offers to purchase any security of the Company (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions of this Section 18), (vi) any federal or state regulatory authority having jurisdiction over such Purchaser, (vii) the NAIC or the SVO or, in each case, any similar organization, or any nationally recognized rating agency that requires access to information about such Purchaser’s investment portfolio, or (viii) any other Person to which such delivery or disclosure may be necessary or appropriate (w) to effect compliance with any law, rule, regulation or order applicable to such Purchaser, (x) in response to any subpoena or other legal process, (y) in connection with any litigation to which such Purchaser is a party (provided that such litigation is related to such Purchaser’s investment in the Bonds) or (z) if an Event of Default has occurred and is continuing, to the extent such Purchaser may reasonably determine such delivery and disclosure to be necessary or appropriate in the enforcement or for the protection of the rights and remedies under such Purchaser’s 2011 Series A Bonds and this Agreement.  Each holder of a 2011 Series A Bond, by its acceptance of a 2011 Series A Bond, will be deemed to have agreed to be bound by and to be entitled to the benefits of this Section 14 as though it were a party to this Agreement.  On reasonable request by the Company in connection with the delivery to any holder of a 2011 Series A Bond of information required to be delivered to such holder under this Agreement or requested by such holder (other than a holder that is a party to this Agreement or its nominee), such holder will enter into an agreement with the Company embodying the provisions of this Section 18.

 

  

- 23 -

  

 

	
Section 19.

	
Substitution of Purchaser.

 

Each Purchaser shall have the right to substitute any one of its Affiliates as the purchaser of the 2011 Series A Bonds that it has agreed to purchase hereunder, by written notice to the Company, which notice shall be signed by both such Purchaser and such Affiliate, shall contain such Affiliate’s agreement to be bound by this Agreement and shall contain a confirmation by such Affiliate of the accuracy with respect to it of the representations set forth in Section 6.  Upon receipt of such notice, any reference to such Purchaser in this Agreement (other than in this Section 19), shall be deemed to refer to such Affiliate in lieu of such original Purchaser.  In the event that such Affiliate is so substituted as a Purchaser hereunder and such Affiliate thereafter transfers to such original Purchaser all of the 2011 Series A Bonds then held by such Affiliate, upon receipt by the Company of notice of such transfer, any reference to such Affiliate as a “Purchaser”  in this Agreement (other than in this Section 19), shall no longer be deemed to refer to such Affiliate, but shall refer to such original Purchaser, and such original Purchaser shall again have all the rights of an original holder of the 2011 Series A Bonds under this Agreement.

 

	
Section 20.

	
Miscellaneous.

 

Section 20.1. Successors and Assigns.  All covenants and other agreements contained in this Agreement by or on behalf of any of the parties hereto bind and inure to the benefit of their respective successors and assigns (including, without limitation, any subsequent holder of a 2011 Series A Bond) whether so expressed or not.

 

  

- 24 -

  

 

Section 20.2. Payments Due on Non-Business Days.  Anything in this Agreement or the Bonds to the contrary notwithstanding, any payment of principal of or Make-Whole Amount or interest on any Bond that is due on a date other than a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day; provided that if the maturity date of any Bond is a date other than a Business Day, the payment otherwise due on such maturity date shall be made on the next succeeding Business Day and shall include the additional days elapsed in the computation of interest payable on such next succeeding Business Day.

 

Section 20.3. Accounting Terms.  All accounting terms used herein which are not expressly defined in this Agreement have the meanings respectively given to them in accordance with GAAP.  Except as otherwise specifically provided herein, (i) all computations made pursuant to this Agreement shall be made using numbers prepared in accordance with GAAP, and (ii) all financial statements shall be prepared in accordance with GAAP.

 

For purposes of determining compliance with the financial covenants contained in the Financing Agreements, any election by the Company to measure an item of Indebtedness using fair value (as permitted by Statement of Financial Accounting Standards No. 159 or any similar accounting standard) shall be disregarded and such determination shall be made as if such election had not been made.

 

Section 20.4. Severability.  Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by law) not invalidate or render unenforceable such provision in any other jurisdiction.

 

Section 20.5. Construction, Etc.  Each covenant contained herein shall be construed (absent express provision to the contrary) as being independent of each other covenant contained herein, so that compliance with any one covenant shall not (absent such an express contrary provision) be deemed to excuse compliance with any other covenant.  Where any provision herein refers to action to be taken by any Person, or which such Person is prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly by such Person.

 

For the avoidance of doubt, all Schedules and Exhibits attached to this Agreement shall be deemed to be a part hereof.

 

Section 20.6. Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be an original but all of which together shall constitute one instrument.  Each counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by all, of the parties hereto.

 

  

- 25 -

  

 

Section 20.7. Governing Law.  This Agreement shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

 

Section 20.8. Jurisdiction and Process; Waiver of Jury Trial.  (a) The Company irrevocably submits to the non-exclusive jurisdiction of any New York State or federal court sitting in the Borough of Manhattan, The City of New York, over any suit, action or proceeding arising out of or relating to this Agreement, the Financing Agreements or the 2011 Series A Bonds.  To the fullest extent permitted by applicable law, the Company irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise, any claim that it is not subject to the jurisdiction of any such court, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.

 

(b)The Company hereby irrevocably appoints CT Corporation System, with offices as of the date of this Agreement at 111 8th Avenue, 13th Floor, New York, New York 10011, as its authorized agent for service of process in relation to any action, suit or proceeding of the nature referred to in Section 20.8(a).  The Company consents to process being served by or on behalf of any holder of a 2011 Series A Bond with respect to any such any action, suit or proceeding by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, return receipt requested to CT Corporation System at the address noted above.  The Company agrees that such service upon receipt (i) shall be deemed in every respect effective service of process upon it in any such suit, action or proceeding and (ii) shall, to the fullest extent permitted by applicable law, be taken and held to be valid personal service upon and personal delivery to it.  Notices hereunder shall be conclusively presumed received as evidenced by a delivery receipt furnished by the United States Postal Service or any reputable commercial delivery service.  The Company further agrees that any failure of CT Corporation System to give notice to the Company of any such service shall not impair or affect the validity of such service of any judgment rendered in any such action, suit or proceeding.  Nothing in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by law.

 

(c)Nothing in this Section 20.8 shall affect the right of any holder of a 2011 Series A Bond to serve process in any manner permitted by law, or limit any right that the holders of any of the 2011 Series A Bonds may have to bring proceedings against the Company in the courts of any appropriate jurisdiction or to enforce in any lawful manner a judgment obtained in one jurisdiction in any other jurisdiction.

 

(d)The Parties hereto hereby waive trial by jury in any action brought on or with respect to this Agreement, the 2011 Series A Bonds or any other document executed in connection herewith or therewith.

*    *    *    *    *

 

  

- 26 -

  

 

If you are in agreement with the foregoing, please sign the form of agreement on a counterpart of this Agreement and return it to the Company, whereupon this Agreement shall become a binding agreement between you and the Company.

 

 

	 	 	
Very truly yours,

	 	 	 
	 	 	
Chugach Electric Association, Inc.

	 	 	 
	 	 	 
	 	 	By /s/ Michael R. Cunningham
	 	 	
Name: Michael R. Cunningham

	 	 	
Title: Sr. Vice President and Chief Financial Officer

	 	 	 
	 	 	 

 

  

- 27 -

  

 

	
Accepted as of the date first written above.

	  	  	  
	  	New York Life Insurance Company
	  	  	  
	  	  	  
	  	
By

	
/s/ Ruthard C. Murphy, II

	  	  	
      Name: Ruthard C. Murphy, II

	  	  	
      Title:   Corporate Vice President

	  	  	  
	  	  	  
	  	New York Life Insurance and Annuity Corporation
	  	  	  
	  	
By

	
New York Life Investment Management LLC, its Investment Manager

	  	  	  
	  	  	  
	  	  	
By /s/ Ruthard C. Murphy, II

	  	  	
      Name: Ruthard C. Murphy, II

	  	  	
      Title:   Director

	  	  	  
	  	  	  
	  	
New York Life Insurance and Annuity Corporation Institutionally Owned Life Insurance Separate Account (BOLI 30C)

	  	  	  
	  	
By

	
New York Life Investment Management LLC, its Investment Manager

	  	  	  
	  	  	  
	  	  	
By /s/ Ruthard C. Murphy, II

	  	  	
       Name: Ruthard C. Murphy, II

	  	  	
      Title:   Director

  

- 28 -

  

  

 

Accepted as of the date first written above.

 

	 	New York Life Insurance and Annuity Corporation Institutionally Owned Life Insurance Separate Account (BOLI 30E)
	 	 	 
	 	 	 
	 	By	
New York Life Investment Management LLC, its Investment Manager

	 	 	 
	 	 	By /s/  Ruthard C.Murphy, II
	 	 	
Name: Ruthard C.Murphy, II

	 	 	
Title:   Director

 

 

- 29 -

 

Accepted as of the date first written above.

 

	 	
Allstate Life Insurance Company

	 	 	 
	 	By 	/s/ Jerry D. Zinkula 
	 	 	
Name: Jerry D. Zinkula

	 	 	 
	 	By  	/s/ Steven E. Shebik
	 	 	
Name: Steven E. Shebik

	 	 	
Authorized Signatories

 

  

- 30 -

  

 

Accepted as of the date first written above.

 

	 	
Knights of Columbus

	 	 	 
	 	 	 
	 	 	By /s/ Ronald J. Tracz
	 	 	
Name:

	 	 	
Title:

 

  

- 31 -

  

Accepted as of the date first written above.

 

	 	 	ING Life Insurance and Annuity Company
	 	 	ING USA Annuity and Life Insurance Company
	 	 	Reliastar Life Insurance Company
	 	 	Reliastar Life Insurance Company of New York
	 	 	 
	 	 	
By:  ING Investment Management LLC, as Agent

	 	 	 
	 	 	 
	 	 	 	
By /s/ Christopher P. Lyons

	 	 	 	
      Name:  Christopher P. Lyons

	 	 	 	
      Title:    Senior Vice President

 

  

- 32 -

  

Accepted as of the date first written above.

 

	 	Aviva Life and Annuity Company
	 	 	 
	 	 	 
	 	By:	
Aviva Investors North America, Inc., Its authorized attorney-in-fact

	 	 	 
	 	 	 
	 	 	
By /s/ Roger D. Fors

	 	 	
      Name:  Roger D. Fors

	 	 	
      Title:  VP-Private Fixed Income

	 	 	 

 

  

- 33 -

  

Accepted as of the date first written above.

	 	
The Lincoln National Life Insurance Company

	 	  	  
	 	
By:  

	
Delaware Investment Advisers, a series of 

Delaware Management Business Trust, 

Attorney in Fact

	 	  	  
	 	  	  
	 	  	
By /s/ Bradley S. Ritter

	 	  	
      Name:  Bradley S. Ritter

	 	  	
      Title:    Senior Vice President

	 	  	  
	 	  	  
	 	
First Penn-Pacific Life Insurance Company

	 	  	  
	 	
By:  

	
Delaware Investment Advisers, a series of 

Delaware Management Business Trust, 

Attorney in Fact

	 	  	  
	 	  	  
	 	  	
By /s/ Bradley S. Ritter

	 	  	
      Name:  Bradley S. Ritter

	 	  	
      Title:    Senior Vice President

  

- 34 -

  

 

Accepted as of the date first written above.

 

	 	
Massachusetts Mutual Life Insurance Company

	 	  	  
	 	
By:

	
Babson Capital Management LLC as Investment Adviser

	 	  	  
	 	  	  
	 	  	  
	 	  	
By /s/ Thomas P. Shea

	 	  	
      Name:  Thomas P. Shea

	 	  	
      Title:   Managing Director

	 	  	  
	 	
C.M. Life Insurance Company

	 	  	  
	 	
By:

	
Babson Capital Management LLC as Investment Adviser

	 	  	  
	 	  	  
	 	  	  
	 	  	
By /s/ Thomas P. Shea

	 	  	
      Name:  Thomas P. Shea

	 	  	
      Title:   Managing Director

 

  

- 35 -

  

Accepted as of the date first written above.

 

	 	
American United Life Insurance Company

	 	  	  
	 	  	  
	 	  	  
	 	  	
By /s/ John Mason

	 	  	
     Name:  John Mason

	 	  	
     Title:   Vice President, Fixed Income Securities

	 	 	 
	 	 	 
	 	
The State Life Insurance Company

	 	  	  
	 	
By:  

	
American United Life Insurance Company

	 	
Its:  

	
Agent

	 	  	  
	 	  	  
	 	By	
 /s/ John Mason

	 	  	
Name:  John Mason

	 	  	
Title:  Vice President, Fixed Income Securities

	 	 	 
	 	 	 
	 	
Pioneer Mutual Life Insurance Company

	 	  	  
	 	
By:  

	
American United Life Insurance Company

	 	
Its:  

	
Agent

	 	  	  
	 	  	  
	 	
By

	
/s/ John Mason

	 	  	
Name: John Mason

	 	  	
Title:  Vice President, Fixed Income Securities

 

  

- 36 -

  

 

Accepted as of the date first written above.

 

	 	
Equitrust Life Insurance Company

	 	  	  
	 	  	  
	 	  	  
	 	
By 

	
/s/ Herman L. Riva

	 	  	
Name:  Herman L. Riva

	 	  	
Title:  Vice President

	 	  	  
	 	  	  
	 	
Farm Bureau Life Insurance Company

	 	  	  
	 	  	  
	 	  	  
	 	
By 

	
/s/ Herman L. Riva

	 	  	
Name:  Herman L. Riva

	 	  	
Title:  Vice President

 

  

- 37 -

  

 

Accepted as of the date first written above.

 

	 	
Country Life Insurance Company

	 	  	  
	 	  	  
	 	  	  
	 	
By 

	
/s/ John Jacobs

	 	  	
Name: John Jacobs

	 	  	
Title: Director – Fixed Income

	 	  	  
	 	  	  
	 	
Cotton States Life Insurance Company

	 	  	  
	 	  	  
	 	  	  
	 	
By 

	
/s/ John Jacobs

	 	  	
Name: John Jacobs

	 	  	
Title:  Director – Fixed Income

 

  

- 38 -

  

 

Accepted as of the date first written above.

 

	 	  	  
	 	
Phoenix Life Insurance Company

	 	  	  
	 	  	  
	 	  	  
	 	
By

	
 /s/ Christopher M. Wilkos

	 	  	
Name: Christopher M. Wilkos

	 	  	
Title: Executive Vice President

	 	  	  
	 	  	  
	 	  	  
	 	
PHL Variable Insurance Company

	 	  	  
	 	  	  
	 	
By

	
 /s/ Christopher M. Wilkos

	 	  	
Name: Christopher M. Wilkos

	 	  	
Title: Executive Vice President

 

  

- 39 -

  

Accepted as of the date first written above.

 

	 	  	  
	 	
National Mutual Benefit

	 	  	  
	 	
By:  

	
Prime Advisors, Inc., its Attorney-in-Fact

	 	  	  
	 	  	  
	 	  	  
	 	
By

	
 /s/ Scott Sell

	 	  	
Name: Scott Sell

	 	  	
Title: Vice President

 

  

- 40 -

  

 

Chugach Electric Association

Information Relating to Purchasers

 

	
Name of and Address

of Purchaser

	 	
Principal Amount of Tranche A Bonds to Be Purchased

	 	 	
Principal Amount of Tranche B Bonds to Be Purchased

	 
	
New York Life Insurance Company 

c/o New York Life Investment Management LLC

51 Madison Avenue

2nd Floor, Room 208

New York, New York  10010

Attention:  FixedIncome Investors Group,

Private Finance, 2nd Floor

Fax Number:  (212) 447-4122

	 	$	27,800,000	 	 	$	0	 

 

Payments

 

All payments by wire or intrabank transfer of immediately available funds to:

	
  

	 	
JPMorgan Chase Bank

	
  

	
 

	
New York, New York  10019

	
  

	
 

	
ABA #021-000-021

	
  

	
 

	
Credit:  New York Life Insurance Company

	
  

	
 

	
General Account No. 008-9-00687

	
  

	
 

	
With sufficient information (including issuer, PPN number, interest rate, maturity and whether payment is of principal, premium, or interest) to identify the source and application of such funds.

 

Notices

 

All notices of payments, written confirmations of such wire transfers and any audit confirmation:

 

Schedule A

(to Bond Purchase Agreement)

 

  

  

  

 

	
  

	
 

	
New York Life Insurance Company

	
  

	
 

	
c/o New York Life Investment Management LLC

	
  

	
 

	
51 Madison Avenue

	
  

	
 

	
2nd Floor, Room 208

	
  

	
 

	
New York, New York  10010-1603

	
  

	
 

	
Attention:  Securities Operations, Private Group, 2nd Floor

	
  

	
 

	
Fax Number:  (908) 840-3385

	
  

	
 

	
with a copy sent electronically to:

	
  

	
 

	
FIIGLibrary@nylim.com

	
  

	
 

	
TraditionalPVtOps@nylim.com

 

 

  

A-2

  

 

All other notices and communications to be addressed as first provided above, with a copy sent electronically to: FIIGLibrary@nylim.com and TraditionalPVtOps@nylim.com, and with a copy of any notices regarding defaults or Events of Default under the operative documents to:  Attention:  Office of the General Counsel, Investment Section, Room 1016, Fax Number: (212) 576-8340.

 

Physical Delivery

 

	
  

	
 

	
New York Life Investment Management LLC

	
  

	
 

	
51 Madison Avenue, Room 1016M

	
  

	
 

	
New York, NY  10010

	
  

	
 

	
Attn:  Rebecca Strutton, Vice President and Assistant General Counsel

	
  

	
 

	
Phone:  (212) 576-4825

Name of Nominee in which Bonds are to be issued:  None

 

Taxpayer I.D. Number:  13-5582869

  

A-3

  

 

	
Name of and Address

of Purchaser

	 	
Principal Amount of Tranche A Bonds to Be Purchased

	 	 	
Principal Amount of Tranche B Bonds to Be Purchased

	 
	
New York Life Insurance and Annuity Corporation

c/o New York Life Investment Management LLC

51 Madison Avenue

2nd Floor, Room 208

New York, New York  10010-1603

Attention:Fixed Income Investors Group, 

                        Private Finance, 2nd Floor

                        Fax Number:  (212) 447-4122

	 	$	21,000,000	 	 	$	0	 

 

Payments

 

All payments by wire or intrabank transfer of immediately available funds to:

 

	
  

	
 

	
JPMorgan Chase Bank

	
  

	
 

	
New York, New York

	
  

	
 

	
ABA #021-000-021

	
  

	
 

	
Credit:  New York Life Insurance and Annuity Corporation

	
  

	
 

	
General Account No. 323-8-47382

	
  

	
 

	
With sufficient information (including issuer, PPN number, interest rate, maturity and whether payment is of principal, premium, or interest) to identify the source and application of such funds.

 

Notices

 

All notices of payments, written confirmations of such wire transfers and any audit confirmation:

	
  

	
 

	
New York Life Insurance and Annuity Corporation

	
  

	
 

	
c/o New York Life Investment Management LLC

	
  

	
 

	
51 Madison Avenue

	
  

	
 

	
2nd Floor, Room 208

	
  

	
 

	
New York, New York  10010-1603

	
  

	
 

	
Attention:  Securities Operation, Private Group, 2nd Floor

	
  

	
 

	
Fax Number:  (908) 840-3385

	
  

	
 

	
  

	
 

	
with a copy sent electronically to:

	
  

	
 

	
  

	
 

	
FIIGLibrary@nylim.com

	
  

	
 

	
TraditionalPVtOps@nylim.com

  

A-4

  

 

All other notices and communications to be addressed as first provided above, with a copy sent electronically to: FIIGLibrary@nylim.com and TraditionalPVtOps@nylim.com, and with a copy of any notices regarding defaults or Events of Default under the operative documents to:  Attention:  Office of the General Counsel, Investment Section, Room 1016, Fax Number: (212) 576-8340.

 

Physical Delivery

 

	
  

	
 

	
New York Life Investment Management LLC

	
  

	
 

	
51 Madison Avenue, Room 1016M

	
  

	
 

	
New York, NY  10010

	
  

	
 

	
Attn:  Rebecca Strutton, Vice President and Assistant General Counsel

	
  

	
 

	
Phone:  (212) 576-4825

 

Name of Nominee in which Bonds are to be issued:  None

 

Taxpayer I.D. Number:  13-3044743

 

  

A-5

  

	
Name of and Address

of Purchaser

	 	
Principal Amount of Tranche A Bonds to Be Purchased

	 	 	
Principal Amount of Tranche B Bonds to Be Purchased

	 
	
New York Life Insurance and Annuity Corporation Institutionally Owned Life Insurance Separate Account

c/o New York Life Investment Management LLC

51 Madison Avenue

2nd Floor, Room 208

New York, New York  10010-1603

Attention:Fixed Income Investors Group, 

Private Finance, 2nd Floor

Fax Number:  (212) 447-4122

	 	$	5,600,000	 	 	$	0	 

Payments

 

All payments by wire or intrabank transfer of immediately available funds to:

	
  

	
 

	
JPMorgan Chase Bank

	
  

	
 

	
New York, New York

	
  

	
 

	
ABA #021-000-021

	
  

	
 

	
Credit: NYLIAC SEPARATE BOLI 30C

	
  

	
 

	
General Account Number 304-6-23970

	
  

	
 

	
  

	
 

	
With sufficient information (including issuer, PPN number, interest rate, maturity and whether payment is of principal, premium, or interest) to identify the source and application of such funds.

 

Notices

 

All notices of payments, written confirmations of such wire transfers and any audit confirmation:

 

	
  

	
 

	
New York Life Insurance and Annuity Corporation

	
  

	
 

	
Institutionally Owned Life Insurance Separate Account

	
  

	
 

	
c/o New York Life Investment Management LLC

	
  

	
 

	
51 Madison Avenue

	
  

	
 

	
2nd Floor, Room 208

	
  

	
 

	
New York, New York  10010-1603

	
  

	
 

	
Attention:  Securities Operation, Private Group, 2nd Floor

	
  

	
 

	
Fax Number:  (908) 840-3385

	
  

	
 

	
  

	
 

	
with a copy sent electronically to:

	
  

	
 

	
  

	
 

	
FIIGLibrary@nylim.com

	
  

	
 

	
TraditionalPVtOps@nylim.com

 

  

A-6

  

 

All other notices and communications to be addressed as first provided above, with a copy sent electronically to: (1) FIIGLibrary@nylim.com and (2) TraditionalPVtOps@nylim.com and with a copy of any notices regarding defaults or Events of Default under the operative documents to:  Attention:  Office of the General Counsel, Investment Section, Room 1016, Fax Number: (212) 576-8340.

 

Physical Delivery

	
  

	
 

	
New York Life Investment Management LLC

	
  

	
 

	
51 Madison Avenue, Room 1016M

	
  

	
 

	
New York, NY  10010

	
  

	
 

	
Attn:  Rebecca Strutton, Vice President and Assistant General Counsel

	
  

	
 

	
Phone:  (212) 576-4825

Name in which Bonds are to be issued:  New York Life Insurance and Annuity Corporation Institutionally Owned Life Insurance Separate Account (BOLI 30C)

 

Taxpayer I.D. Number:  13-3044743

 

  

A-7

  

	
Name of and Address

of Purchaser

	 	
Principal Amount of Tranche A Bonds to Be Purchased

	 	 	
Principal Amount of Tranche B Bonds to Be Purchased

	 
	
New York Life Insurance and Annuity Corporation Institutionally Owned Life Insurance Separate Account

c/o New York Life Investment Management LLC

51 Madison Avenue

2nd Floor, Room 208

New York, New York  10010-1603

Attention:Fixed Income Investors Group, 

Private Finance, 2nd Floor

Fax Number:  (212) 447-4122

	 	$	600,000	 	 	$	0	 

 

Payments

 

All payments by wire or intrabank transfer of immediately available funds to:

	
  

	
 

	
JPMorgan Chase Bank

	
  

	
 

	
New York, New York

	
  

	
 

	
ABA #021-000-021

	
  

	
 

	
Credit: NYLIAC SEPARATE BOLI 30E

	
  

	
 

	
General Account Number 860318708

	
  

	
 

	
With sufficient information (including issuer, PPN number, interest rate, maturity and whether payment is of principal, premium, or interest) to identify the source and application of such funds.

Notices

 

All notices of payments, written confirmations of such wire transfers and any audit confirmation:

	
  

	
 

	
New York Life Insurance and Annuity Corporation

	
  

	
 

	
Institutionally Owned Life Insurance Separate Account

	
  

	
 

	
c/o New York Life Investment Management LLC

	
  

	
 

	
51 Madison Avenue

	
  

	
 

	
2nd Floor, Room 208

	
  

	
 

	
New York, New York  10010-1603

	
  

	
 

	
Attention:  Securities Operation, Private Group, 2nd Floor

	
  

	
 

	
Fax Number:  (908) 840-3385

	
  

	
 

	
  

	
 

	
with a copy sent electronically to:

	
  

	
 

	
  

	
 

	
FIIGLibrary@nylim.com

	
  

	
 

	
TraditionalPVtOps@nylim.com

  

A-8

  

All other notices and communications to be addressed as first provided above, with a copy sent electronically to: (1) FIIGLibrary@nylim.com and (2) TraditionalPVtOps@nylim.com and with a copy of any notices regarding defaults or Events of Default under the operative documents to:  Attention:  Office of the General Counsel, Investment Section, Room 1016, Fax Number: (212) 576-8340.

 

Physical Delivery

	
  

	
 

	
New York Life Investment Management LLC

	
  

	
 

	
51 Madison Avenue, Room 1016M

	
  

	
 

	
New York, NY  10010

	
  

	
 

	
Attn:  Rebecca Strutton, Vice President and Assistant General Counsel

	
  

	
 

	
Phone:  (212) 576-4825

Name in which Bonds are to be issued:  New York Life Insurance and Annuity Corporation Institutionally Owned Life Insurance Separate Account (BOLI 30E)

 

Taxpayer I.D. Number:  13-3044743

 

  

A-9

  

	
Name of and Address

of Purchaser

	 	
Principal Amount of Tranche A Bonds to Be Purchased

	 	 	
Principal Amount of Tranche B Bonds to Be Purchased

	 
	
Allstate Life Insurance Company

c/o Allstate Investments LLC

Attention:  Private Placements Department

3075 Sanders Road, STE G3A

Northbrook, Illinois  60062-7127

Telephone:  (847) 402-7117

Telecopy:  (866) 226-2806

	 	
$

$

$

$

	
6,000,000

6,000,000

4,000,000

4,000,000

	 	 	$	0	 

 

Payments

 

All payments by Fedwire transfer of immediately available funds or ACH Payment, identifying the name of the Issuer, the Private Placement Number and the payment as principal, interest or premium, in the format as follows:

 

	 	 	
Bank:  Citibank

	 	 	
ABA#:  021000089

	 	 	
Account name:  Allstate Life Insurance Company Collection Account – PP 

	 	 	
Account #:  30547007

	 	 	
Reference: OBI PPN 171265 A*2, Chugach Electric Association 4.20% First Mortgage Bonds, 

 

2011 Series A, Tranche A, Due March 15, 2031 Payment Due Date: (MM/DD/YY) and the type and amount of payment being made.

 

	 	 	
For Example:

	 	 	
P ______ (enter “P” and the amount of principal being remitted, for example, P5000000.00) —

	 	 	
I ______ (enter “I” and the amount of interest being remitted, for example, I225000.00)

	 	 	
 

 

Notices

 

All notices of scheduled payments and written confirmation of such wire transfer to be sent to:

 

	
  

	
 

	
Allstate Investments LLC

	
  

	
 

	
Investment Operations—Private Placements

	
  

	
 

	
3075 Sanders Road, STE G4A

	
  

	
 

	
Northbrook, Illinois  60062-7127

	
  

	
 

	
Telephone:  (847) 402-6672 Private Placements

	
  

	
 

	
Telecopy:  (847) 326-7032

	
  

	
 

	
Email:  PrivateIOD@allstate.com

All financial reports, compliance certificates and all other written communications, including notice of prepayments to be sent by email (PrivateCompliance@allstate.com) or hard copy addressed as first provided above.

 

  

A-10

  

 

Physical Delivery

	
  

	
 

	
Citibank N.A.

	
  

	
 

	
399 Park Avenue

	
  

	
 

	
Level B Vault

	
  

	
 

	
New York, NY 10022

	
  

	
 

	
Attention:  Danny Reyes

	
  

	
 

	
For Allstate Life Insurance Company/Safekeeping Account No. 846627

Name of Nominee in which Bonds are to be issued:  None

 

Taxpayer I.D. Number:  36-2554642

 

  

A-11

  

 

	
Name of and Address

of Purchaser

	 	
Principal Amount of Tranche A Bonds to Be Purchased

	 	 	
Principal Amount of Tranche B Bonds to Be Purchased

	 
	
Knights of Columbus

One Columbus Plaza

New Haven, CT 06510-3326

Attn: Investment Accounting Dept., 14th Floor

	 	$	15,000,000	 	 	$	0	 

 

Payments

 

All payments on account of Bonds held by such purchaser shall be made by wire transfer of immediately available funds to:

	
  

	
 

	
Bank of New York

	
  

	
 

	
ABA #021000018

	
  

	
 

	
CREDIT A/C:  GLA111566

	
  

	
 

	
ATTN:  P&I Dept

	
  

	
 

	
A/C Name:  Knights of Columbus Life Account

	
  

	
 

	
Account#:  200700

	
  

	
 

	
P&I Breakdown:________________

	
  

	
 

	
RE: 

	
PPN 171265 A*2, Chugach Electric Association 4.20% First Mortgage Bonds, 

2011 Series A, Tranche A, Due March 15, 2031

 

Notices

 

All notices and communications should be emailed and mailed to:

 

	
  

	
 

	
Knights of Columbus

	
  

	
 

	
Life Account #200700

	
  

	
 

	
Attention:  Investment Department, 19th Floor

	
  

	
 

	
One Columbus Plaza

	
  

	
 

	
New Haven, CT 06510-3326

	
  

	
 

	
Email:  Investments@kofc.org, Sarah.capozzo@kofc.org

	
  

	
 

	
Phone:  (203) 752-4127

	
  

	
 

	
Fax:  (203) 752-4117

Physical Delivery

	
  

	
 

	
The Bank of New York Mellon

	
  

	
 

	
One Wall Street, 3rd Floor, Window “A”

	
  

	
 

	
New York, NY 10286

	
  

	
 

	
Attn: 

	
Mary Wong, Assistant Treasurer (212) 635-1003

Physical Delivery

KNIGHTS OF COLUMBUS LIFE ACCOUNT #200700

Name of Nominee in which Bonds are to be issued:  None

Taxpayer I.D. Number:  06-0416470

 

  

A-12

  

	
Name of and Address

of Purchaser

	 	
Principal Amount of Tranche A Bonds to Be Purchased

	 	 	
Principal Amount of Tranche B Bonds to Be Purchased

	 
	
ING USA Annuity and Life 

  Insurance Company

c/o ING Investment Management LLC

5780 Powers Ferry Road NW, Suite 300

Atlanta, Georgia 30327-4347

Attn:  Private Placements

Fax:  (770) 690-5057

	 	$	0	 	 	$	18,400,000	 

 

Payments

All payments on account of Notes held by such purchaser should be made by wire transfer of immediately available funds (identifying each payment as “Chugach Electric Association 4.75% First Mortgage Bonds, 2011 Series A, Tranche B, due March 15, 2041, PPN 171265 A@0, principal, premium or interest”) for credit to:

	
  

	
 

	
The Bank of New York Mellon

	
  

	
 

	
ABA #021000018

 

	
  

	
 

	
Account:  IOC 566/INST’L CUSTODY (for scheduled principal and interest payments)

 

	
  

	
 

	
Account:  IOC 565/INST’L CUSTODY (for all payments other than scheduled principal and interest)

 

	
  

	
 

	
For further credit to:  ING USA/Acct. 136373

	
  

	
 

	
Ref:  PPN 171265 A@0

Each such wire transfer should set forth the name of the issuer, the full title (including the coupon rate, issuance date, and final maturity date) of the Notes on account of which such payment is made, and the due date and application (as among principal, premium and interest) of the payment being made.

 

Notices

All notices and communications with respect to payment to be addressed:

	
  

	
 

	
ING Investment Management LLC

	
  

	
 

	
5780 Powers Ferry Road NW, Suite 300

	
  

	
 

	
Atlanta, Georgia 30327-4347

	
  

	
 

	
Attn:  Operations/Settlements

	
  

	
 

	
Fax:  (770) 690-4886

All other notices and communications to be addressed as first provided above.

 

  

A-13

  

 

Physical Delivery

	
  

	
 

	
The Bank of New York Mellon

	
  

	
 

	
One Wall Street

	
  

	
 

	
Window A - 3rd Floor

	
  

	
 

	
New York, NY 10286

	
  

	
 

	
Ref:  ING USA/Acct. 136373

	
  

	
 

	
With a copy of the Note transmittal to:

	
  

	
 

	
ING Investment Management LLC

	
  

	
 

	
5780 Powers Ferry Road NW, Suite 300

	
  

	
Atlanta, GA 30327-4347

	
  

	
 

	
Attn:  Patti Boss

	
  

	
 

	
Fax:  (770) 690-5168

Name of Nominee in which Notes are to be issued:  None

 

Taxpayer I.D. Number:  41-0991508

 

  

A-14

  

 

 

 

	
Name of and Address

of Purchaser

	 	
Principal Amount of Tranche A Bonds to Be Purchased

	 	 	
Principal Amount of Tranche B Bonds to Be Purchased

	 
	
Reliastar Life Insurance Company

c/o ING Investment Management LLC

5780 Powers Ferry Road NW, Suite 300

Atlanta, Georgia 30327-4347

Attn:  Private Placements

Fax:  (770) 690-5057

	 	$	0	 	 	$	13,900,000	 

 

Payments

All payments on account of Notes held by such purchaser should be made by wire transfer of immediately available funds (identifying each payment as “Chugach Electric Association 4.75% First Mortgage Bonds, 2011 Series A, Tranche B, due March 15, 2041, PPN 171265 A@0, principal, premium or interest”) for credit to:

 

	
  

	
 

	
The Bank of New York Mellon

	
  

	
 

	
ABA #021000018

 

	
  

	
 

	
Account:  IOC 566/INST’L CUSTODY (for scheduled principal and interest payments)

 

	
  

	
 

	
Account:  IOC 565/INST’L CUSTODY (for all payments other than scheduled principal and interest)

 

	
  

	
 

	
For further credit to:  RLIC/Acct. 187035

	
  

	
 

	
Ref:  PPN 171265 A@0

Each such wire transfer should set forth the name of the issuer, the full title (including the coupon rate, issuance date, and final maturity date) of the Notes on account of which such payment is made, and the due date and application (as among principal, premium and interest) of the payment being made.

 

Notices

All notices and communications with respect to payment to be addressed:

	
  

	
 

	
ING Investment Management LLC

	
  

	
 

	
5780 Powers Ferry Road NW, Suite 300

	
  

	
 

	
Atlanta, Georgia 30327-4347

	
  

	
 

	
Attn:  Operations/Settlements

	
  

	
 

	
Fax:  (770) 690-4886

 

All other notices and communications to be addressed as first provided above.

 

  

A-15

  

 

Physical Delivery

	
  

	
 

	
The Bank of New York Mellon

	
  

	
 

	
One Wall Street

	
  

	
 

	
Window A - 3rd Floor

	
  

	
 

	
New York, NY 10286

	
  

	
 

	
Ref: RLIC/Acct. 187035

	
  

	
 

	
With a copy of the Note transmittal to:

	
  

	
 

	
ING Investment Management LLC

	
  

	
 

	
5780 Powers Ferry Road NW, Suite 300

	
  

	
Atlanta, GA 30327-4347

	
  

	
 

	
Attn:  Patti Boss

	
  

	
 

	
Fax:  (770) 690-5168

 

Name of Nominee in which Notes are to be issued:  None

 

Taxpayer I.D. Number:  41-0451140

 

  

A-16

  

 

	
Name of and Address

of Purchaser

	 	
Principal Amount of Tranche A Bonds to Be Purchased

	 	 	
Principal Amount of Tranche B Bonds to Be Purchased

	 
	
ING Life Insurance and Annuity Company

c/o ING Investment Management LLC

5780 Powers Ferry Road NW, Suite 300

Atlanta, Georgia 30327-4347

Attn:  Private Placements

Fax:  (770) 690-5057

	 	$	0	 	 	$	9,900,000	 

 

Payments

All payments on account of Notes held by such purchaser should be made by wire transfer of immediately available funds (identifying each payment as “Chugach Electric Association 4.75% First Mortgage Bonds, 2011 Series A, Tranche B, due March 15, 2041, PPN 171265 A@0, principal, premium or interest”) for credit to:

 

	
  

	
 

	
The Bank of New York Mellon

	
  

	
 

	
ABA #021000018

 

	
  

	
 

	
Account:  IOC 566/INST’L CUSTODY (for scheduled principal and interest payments)

 

	
  

	
 

	
Account:  IOC 565/INST’L CUSTODY (for all payments other than scheduled principal and interest)

 

	
  

	
 

	
For further credit to:  ILIAC/Acct. 216101

	
  

	
 

	
Ref:  PPN 171265 A@0

 

Each such wire transfer should set forth the name of the issuer, the full title (including the coupon rate, issuance date, and final maturity date) of the Notes on account of which such payment is made, and the due date and application (as among principal, premium and interest) of the payment being made.

 

Notices

All notices and communications with respect to payment to be addressed:

 

	
  

	
 

	
ING Investment Management LLC

	
  

	
 

	
5780 Powers Ferry Road NW, Suite 300

	
  

	
 

	
Atlanta, Georgia 30327-4347

	
  

	
 

	
Attn:  Operations/Settlements

	
  

	
 

	
Fax:  (770) 690-4886

All other notices and communications to be addressed as first provided above.

 

  

A-17

  

 

Physical Delivery

	
  

	
 

	
The Bank of New York Mellon

	
  

	
 

	
One Wall Street

	
  

	
 

	
Window A - 3rd Floor

	
  

	
 

	
New York, NY 10286

	
  

	
 

	
Ref:  ILIAC/Acct. 216101

	
  

	
 

	
With a copy of the Note transmittal to:

	
  

	
 

	
ING Investment Management LLC

	
  

	
 

	
5780 Powers Ferry Road NW, Suite 300

	
  

	
Atlanta, GA 30327-4347

	
  

	
 

	
Attn:  Patti Boss

	
  

	
 

	
Fax:  (770) 690-5168

Name of Nominee in which Notes are to be issued:  None

 

Taxpayer I.D. Number:  71-0294708

 

  

A-18

  

 

	
Name of and Address

of Purchaser

	 	
Principal Amount of Tranche A Bonds to Be Purchased

	 	 	
Principal Amount of Tranche B Bonds to Be Purchased

	 
	
ING USA Annuity and Life Insurance Company

c/o ING Investment Management LLC

5780 Powers Ferry Road NW, Suite 300

Atlanta, Georgia 30327-4347

Attn:  Private Placements

Fax:  (770) 690-5057

	 	$	0	 	 	$	7,500,000	 

 

Payments

All payments on account of Notes held by such purchaser should be made by wire transfer of immediately available funds (identifying each payment as “Chugach Electric Association 4.75% First Mortgage Bonds, 2011 Series A, Tranche B, due March 15, 2041, PPN 171265 A@0, principal, premium or interest”) for credit to:

	
  

	
 

	
The Bank of New York Mellon

	
  

	
 

	
ABA #021000018

 

	
  

	
 

	
Account:  IOC 566/INST’L CUSTODY (for scheduled principal and interest payments)

 

	
  

	
 

	
Account:  IOC 565/INST’L CUSTODY (for all payments other than scheduled principal and interest)

 

	
  

	
 

	
For further credit to:  ING USA/Acct. 179369

	
  

	
 

	
Ref:  PPN 171265 A@0

 

Each such wire transfer should set forth the name of the issuer, the full title (including the coupon rate, issuance date, and final maturity date) of the Notes on account of which such payment is made, and the due date and application (as among principal, premium and interest) of the payment being made.

 

Notices

All notices and communications with respect to payment to be addressed:

	
  

	
 

	
ING Investment Management LLC

	
  

	
 

	
5780 Powers Ferry Road NW, Suite 300

	
  

	
 

	
Atlanta, Georgia 30327-4347

	
  

	
 

	
Attn:  Operations/Settlements

	
  

	
 

	
Fax:  (770) 690-4886

All other notices and communications to be addressed as first provided above.

 

  

A-19

  

 

Physical Delivery

	
  

	
 

	
The Bank of New York Mellon

	
  

	
 

	
One Wall Street

	
  

	
 

	
Window A - 3rd Floor

	
  

	
 

	
New York, NY 10286

	
  

	
 

	
Ref:  ING USA/Acct. 179369

	
  

	
 

	
  

	
 

	
With a copy of the Note transmittal to:

	
  

	
 

	
  

	
 

	
ING Investment Management LLC

	
  

	
 

	
5780 Powers Ferry Road NW, Suite 300

	
  

	
Atlanta, GA 30327-4347

	
  

	
 

	
Attn:  Patti Boss

	
  

	
 

	
Fax:  (770) 690-5168

Name of Nominee in which Notes are to be issued:  None

 

Taxpayer I.D. Number:  41-0991508

 

  

A-20

  

 

	
Name of and Address

of Purchaser

	 	
Principal Amount of Tranche A Bonds to Be Purchased

	 	 	
Principal Amount of Tranche B Bonds to Be Purchased

	 
	
Reliastar Life Insurance Company of 

  New York

c/o ING Investment Management LLC

5780 Powers Ferry Road NW, Suite 300

Atlanta, Georgia 30327-4347

Attn:  Private Placements

Fax:  (770) 690-5057

	 	$	0	 	 	$	300,000	 

 

Payments

All payments on account of Notes held by such purchaser should be made by wire transfer of immediately available funds (identifying each payment as “Chugach Electric Association 4.75% First Mortgage Bonds, 2011 Series A, Tranche B, due March 15, 2041, PPN 171265 A@0, principal, premium or interest”) for credit to:

	
  

	
 

	
The Bank of New York Mellon

	
  

	
 

	
ABA #021000018

 

	
  

	
 

	
Account:  IOC 566/INST’L CUSTODY (for scheduled principal and interest payments)

 

	
  

	
 

	
Account:  IOC 565/INST’L CUSTODY (for all payments other than scheduled principal and interest)

 

	
  

	
 

	
For further credit to:  RLNY/Acct. 187038

	
  

	
 

	
Ref:  PPN 171265 A@0

Each such wire transfer should set forth the name of the issuer, the full title (including the coupon rate, issuance date, and final maturity date) of the Notes on account of which such payment is made, and the due date and application (as among principal, premium and interest) of the payment being made.

 

Notices

All notices and communications with respect to payment to be addressed:

	
  

	
 

	
ING Investment Management LLC

	
  

	
 

	
5780 Powers Ferry Road NW, Suite 300

	
  

	
 

	
Atlanta, Georgia 30327-4347

	
  

	
 

	
Attn:  Operations/Settlements

	
  

	
 

	
Fax:  (770) 690-4886

 

All other notices and communications to be addressed as first provided above.

 

  

A-21

  

 

Physical Delivery

	
  

	
 

	
The Bank of New York Mellon

	
  

	
 

	
One Wall Street

	
  

	
 

	
Window A - 3rd Floor

	
  

	
 

	
New York, NY 10286

	
  

	
 

	
Ref:  RLNY/Acct. 187038

	
  

	
 

	
  

	
 

	
With a copy of the Note transmittal to:

	
  

	
 

	
  

	
 

	
ING Investment Management LLC

	
  

	
 

	
5780 Powers Ferry Road NW, Suite 300

	
  

	
Atlanta, GA 30327-4347

	
  

	
 

	
Attn:  Patti Boss

	
  

	
 

	
Fax:  (770) 690-5168

 

Name of Nominee in which Notes are to be issued:  None

 

Taxpayer I.D. Number:  53-0242530

 

  

A-22

  

 

	
Name of and Address

of Purchaser

	 	
Principal Amount of Tranche A Bonds to Be Purchased

	 	 	
Principal Amount of Tranche B Bonds to Be Purchased

	 
	
Aviva Life and Annuity Company

c/o Aviva Investors North America, Inc.

215 10th Street, Suite 1000

Des Moines, IA 50309

	 	$	0	 	 	$	40,000,000	 

 

Payments

All payments on or in respect of the Bonds to be by bank wire transfer of Federal or other immediately available funds to:

	
  

	
 

	
The Bank of New York

	
  

	
 

	
New York, New York

	
  

	
 

	
ABA #021000018

	
  

	
 

	
Credit A/C# GLA111566

	
  

	
 

	
A/C Name:  Institutional Custody Insurance Division

	
  

	
 

	
Custody Account Name:  Aviva Life and Annuity Co-Annuity

	
  

	
 

	
Custody Account Number:  010048

	
  

	
 

	
Reference:  Chugach Electric Association 4.75% First Mortgage Bonds, 2011 Series A, Tranche B, 

	
  

	
Due March 15, 2041, PPN 171265 A@0, and Application (as among 

	
  

	
principal, make-whole and interest) of the payment being made.

Notices

All notices and communications, including Financials, Compliance and Requests to be addressed:

	
  

	
 

	
Aviva Life and Annuity Company

	
  

	
 

	
c/o Aviva Investors North America, Inc.

	
  

	
 

	
Attention:  Private Fixed Income Dept.

	
  

	
 

	
215 10th Street, Suite 1000

	
  

	
 

	
Des Moines, IA 50309

	
  

	
 

	
Preferred Remittance:  privateplacements@avivainvestors.com

Physical Delivery

 

	
  

	
 

	
The Bank of New York

	
  

	
 

	
One Wall Street, 3rd Floor

	
  

	
 

	
Window A

	
  

	
 

	
New York, New York 10286

	
  

	
 

	
FAO:  Aviva Life and Annuity Co-Annuity, A/C #010048

Name of Nominee in which Bonds are to be issued:  HARE & CO.

 

Taxpayer I.D. Number for Aviva Life and Annuity Company: 42-0175020

Taxpayer I.D. Number for Hare & Co.: 13-6062916

 

  

A-23

  

	
Name of and Address

of Purchaser

	 	
Principal Amount of Tranche A Bonds to Be Purchased

	 	 	
Principal Amount of Tranche B Bonds to Be Purchased

	 
	
The Lincoln National Life Insurance Company

c/o Delaware Investment Advisers

2005 Market Street, Mail Stop 41-104

Philadelphia, Pennsylvania  19103

Attention:  Fixed Income Private Placements

Telefacsimile:  (215) 255-1654

	 	$	0	 	 	
$

$

$

$

	
16,000,000

9,000,000

6,000,000

4,000,000

	 

 

Payments

All payments on or in respect of the Bonds to be by bank wire transfer of Federal or other immediately available funds (identifying each payment as “Chugach Electric Association 4.75% First Mortgage Bonds, 2011 Series A, Tranche B, Due March 15, 2041, PPN 171265 A@0, principal, premium or interest”) to:

 

	
  

	
 

	
The Bank of New York Mellon

	
  

	
 

	
One Wall Street, New York, New York 10286

	
  

	
 

	
ABA #021000018

	
  

	
 

	
BNF:  IOC566

	
  

	
 

	
Attention:  Private Placement P&I Dept.

	
  

	
 

	
Further Credit:  The Lincoln National Life Insurance Company

	
  

	
 

	
Ref:  PPN/CUSIP# / SECURITY DESC / PAYT REASON

	
  

	
 

	
FFC Account Numbers Listed Below:

 

	
Bond Amount

	 	
 

Lincoln Account Name

	 	
Custody Number

	 
	$	16,000,000	 	
The Lincoln National Life Insurance Company—Seg 11

	 	 	215715	 
	$	9,000,000	 	
The Lincoln National Life Insurance Company—Seg 10

	 	 	215714	 
	$	6,000,000	 	
The Lincoln National Life Insurance Company—Seg 65

	 	 	215732	 
	$	4,000,000	 	
The Lincoln National Life Insurance Company—Seg JP201

	 	 	186228	 

 

Notices

 

All notices and communications, including notices with respect to payments and written confirmation of each such payment, to be addressed to:

 

  

A-24

  

 

	
  

	
 

	
Delaware Investment Advisers

	
  

	
 

	
2005 Market Street, Mail Stop 41-104

	
  

	
 

	
Philadelphia, Pennsylvania  19103

	
  

	
 

	
Attention:  Fixed Income Private Placements

	
  

	
 

	
Private Placement Fax:  (215) 255-1654

	
  

	
 

	
  

	
 

	
With notices of PAYMENT ONLY:

	
  

	
 

	
  

	
 

	
Lincoln Financial Group

	
  

	
 

	
1300 South Clinton Street, Mail Stop 2H-17

	
  

	
 

	
Fort Wayne, Indiana  46802

	
  

	
 

	
Attention:  K. Estep — Investment Accounting

	
  

	
 

	
Investment Accounting Fax:  (260) 455-2622

	
  

	
 

	
  

	
 

	
and

	
  

	
 

	
  

	
 

	
The Bank of New York Mellon

	
  

	
 

	
P. O. Box 19266

	
  

	
 

	
Newark, New Jersey  07195

	
  

	
 

	
Attention:  Private Placement P&I Department

	
  

	
 

	
Reference:  Account Name and PPN Number

 

Physical Delivery

	
  

	
 

	
The Bank of New York Mellon

	
  

	
 

	
Attn:  Free Receive Department

	
  

	
 

	
Contact Person:  Arnold Musella (Telephone: 212-635-1917)

	
  

	
 

	
One Wall Street, 3rd Floor

	
  

	
 

	
New York, NY 10286

	
  

	
 

	
(in cover letter reference bond amount, acct name, and bank acct #)

	
  

	
 

	
  

	
 

	
Please fax copy of cover letter to:

	
Karen Costa—The Bank of New York Mellon

Fax#:  (315) 414-5017

	
  

	
 

	
with a copy to:

	
  

	
 

	
Lincoln Financial Group

	
  

	
 

	
Attn:  Kathy Bireley

	
  

	
 

	
100 N. Greene Street

	
  

	
 

	
Greensboro, NC 27401

Name of Nominee in which Bonds are to be issued:  None

Taxpayer I.D. Number:  35-0472300

 

  

A-25

  

 

	
Name of and Address

of Purchaser

	 	
Principal Amount of Tranche A Bonds to Be Purchased

	 	 	
Principal Amount of Tranche B Bonds to Be Purchased

	 
	
First Penn-Pacific Life Insurance Company

c/o Delaware Investment Advisers

2005 Market Street, Mail Stop 41-104

Philadelphia, Pennsylvania  19103

Attention:  Fixed Income Private Placements

Telefacsimile:  (215) 255-1654

	 	$	0	 	 	$	5,000,000	 

 

Payments

All payments on or in respect of the Bonds to be by bank wire transfer of Federal or other immediately available funds (identifying each payment as “Chugach Electric Association 4.75% First Mortgage Bonds, 2011 Series A, Tranche B, Due March 15, 2041, PPN 171265 A@0, principal, premium or interest”) to:

 

	
  

	
 

	
NORTHERN CHGO/Trust

	
  

	
 

	
801 South Canal St., Chicago, IL 60607

	
  

	
 

	
ABA #:  071000152

	
  

	
 

	
Credit Wire Account #:  5186041000

	
  

	
 

	
Attention:  Income / Dividend

	
  

	
 

	
For Further Credit to:  First Penn-Pacific Life Insurance Company

	
  

	
 

	
Further Credit Custody A/C #:  26-27448

	
  

	
 

	
Ref:  Name of Security, PPN Number, Rate, Maturity, P=$, I=$

 

Notices

All notices and communications, including notices with respect to payments and written confirmation of each such payment, to be addressed to:

 

  

A-26

  

 

	
  

	
 

	
Delaware Investment Advisers

	
  

	
 

	
2005 Market Street, Mail Stop 41-104

	
  

	
 

	
Philadelphia, Pennsylvania  19103

	
  

	
 

	
Attention:  Fixed Income Private Placements

	
  

	
 

	
Private Placement Fax:  (215) 255-1654

	
  

	
 

	
  

	
 

	
With notices of PAYMENT ONLY:

	
  

	
 

	
  

	
 

	
Lincoln Financial Group

	
  

	
 

	
1300 South Clinton Street, Mail Stop 2H-17

	
  

	
 

	
Fort Wayne, Indiana  46802

	
  

	
 

	
Attention:  K. Estep — Investment Accounting

	
  

	
 

	
Investment Accounting Fax:  (260) 455-2622

	
  

	
 

	
  

	
 

	
and

	
  

	
 

	
  

	
 

	
The Northern Trust Company

	
  

	
 

	
801 South Canal Street

	
  

	
 

	
Income Collections C-4S

	
  

	
 

	
Attention:  Viola Nash / Oscell Owens

	
  

	
 

	
Chicago, IL 60607

	
  

	
 

	
Fax:  312-630-8179

	
  

	
 

	
REFERENCE Account:  26-27448 for First Penn-Pacific Life Ins. Co. & PPN/CUSIP#

 

Physical Delivery

	
  

	
 

	
  

	
 

	
The Northern Trust Company of New York

	
  

	
 

	
Harborside Financial Center 10, Suite 1401

	
  

	
 

	
3 Second Street

	
  

	
 

	
Attention:  Jose Mero—Telephone:  201-793-2739

	
  

	
 

	
For Account of:  First Penn-Pacific Life Insurance Company

	
  

	
 

	
Account #:  26-27448

	
  

	
 

	
Jersey City, NJ 07311

	
  

	
 

	
(IN COVER LETTER REF Acct # 26-27448 for FIRST PENN-PACIFIC LIFE INS)

	
  

	
 

	
  

	
 

	
with a copy to:

	
  

	
 

	
  

	
 

	
Lincoln Financial Group

	
  

	
 

	
Attn:  Kathy Bireley

	
  

	
 

	
100 N. Greene Street

	
  

	
 

	
Greensboro, NC 27401

 

Name of Nominee in which Bonds are to be issued:  None

Taxpayer I.D. Number:  23-2044248

 

  

A-27

  

 

	
Name of and Address

of Purchaser

	 	
Principal Amount of Tranche A Bonds to Be Purchased

	 	 	
Principal Amount of Tranche B Bonds to Be Purchased

	 
	
Massachusetts Mutual Life Insurance Company

c/o Babson Capital Management LLC

1500 Main Street, Suite 2200

P.O. Box 15189

Springfield, Massachusetts 01115-5189

Attention:  Securities Investment Division

	 	$	0	 	 	$	28,000,000	 

 

Payments

All payments on or in respect of the Bonds to be by bank wire transfer of Federal or other immediately available funds (identifying each payment as “Chugach Electric Association 4.75% First Mortgage Bonds, 2011 Series A, Tranche B, Due March 15, 2041, PPN 171265 A@0, principal, premium or interest”) to:

 

	
  

	
 

	
MassMutual Co-Owned Account

	
  

	
 

	
Citibank

	
  

	
 

	
New York, New York  

	
  

	
 

	
ABA # 021000089

	
  

	
 

	
Account # 30510685

	
  

	
 

	
Re:  Description of security, cusip, principal and interest split

With telephone advice of payment to the Securities Custody and Collection Department of Babson Capital Management LLC at (413) 226-1754 or (413) 226-1803.

 

Notices

All notices and communications to be addressed as first provided above, except notices with respect to payments to be addressed Suite 200, Attention:  Securities Custody and Collection Department.

 

Physical Delivery

	
  

	
 

	
Steven J. Katz, Counsel

	
  

	
 

	
Babson Capital Management LLC

	
  

	
 

	
1500 Main Street, Suite 2800

	
  

	
 

	
Springfield, MA  01115

	
  

	
 

	
Phone:  413-226-1059

	
  

	
 

	
Fax: 413-226-2059

	
  

	
 

	
Email:  skatz@babsoncapital.com

Name of Nominee in which Bonds are to be issued:  None

Taxpayer I.D. Number:  04-1590850

 

  

A-28

  

 

	
Name of and Address

of Purchaser

	 	
Principal Amount of Tranche A Bonds to Be Purchased

	 	 	
Principal Amount of Tranche B Bonds to Be Purchased

	 
	
C.M. Life Insurance Company

c/o Babson Capital Management LLC

1500 Main Street, Suite 2200

P.O. Box 15189

Springfield, Massachusetts 01115-5189

Attention:  Securities Investment Division

	 	$	0	 	 	$	2,000,000	 

 

Payments

All payments on or in respect of the Bonds to be by bank wire transfer of Federal or other immediately available funds (identifying each payment as “Chugach Electric Association 4.75% First Mortgage Bonds, 2011 Series A, Tranche B, Due March 15, 2041, PPN 171265 A@0, principal, premium or interest”) to:

 

	
  

	
 

	
MassMutual Co-Owned Account

	
  

	
 

	
Citibank

	
  

	
 

	
New York, New York  

	
  

	
 

	
ABA # 021000089

	
  

	
 

	
Account # 30510685

	
  

	
 

	
Re:  Description of security, cusip, principal and interest split

With telephone advice of payment to the Securities Custody and Collection Department of Babson Capital Management LLC at (413) 226-1754 or (413) 226-1803.

 

Notices

All notices and communications to be addressed as first provided above, except notices with respect to payments to be addressed Suite 200, Attention:  Securities Custody and Collection Department.

 

Physical Delivery

 

	
  

	
 

	
Steven J. Katz, Counsel

	
  

	
 

	
Babson Capital Management LLC

	
  

	
 

	
1500 Main Street, Suite 2800

	
  

	
 

	
Springfield, MA  01115

	
  

	
 

	
Phone:  413-226-1059

	
  

	
 

	
Fax: 413-226-2059

	
  

	
 

	
Email:  skatz@babsoncapital.com

Name of Nominee in which Bonds are to be issued:  None

Taxpayer I.D. Number:  06-1041383

 

  

A-29

  

 

	
Name of and Address

of Purchaser

	 	
Principal Amount of Tranche A Bonds to Be Purchased

	 	 	
Principal Amount of Tranche B Bonds to Be Purchased

	 
	
American United Life Insurance Company

One American Square, Suite 305W

P.O. Box 368

Indianapolis, Indiana  46206

Attention:  Michael Bullock, Securities Department

Overnight Mailing Address:

250 W. North Street

Indianapolis, Indiana 46202

Attention:  Michael Bullock, Securities Department

	 	$	0	 	 	$	5,000,000	 

 

Payments

All payments on or in respect of the Bonds to be by bank wire transfer of Federal or other immediately available funds (identifying each payment as “Chugach Electric Association 4.75% First Mortgage Bonds, 2011 Series A, Tranche B, Due March 15, 2041, PPN 171265 A@0, principal, premium or interest”) to the following bank account:

	
  

	
 

	
AMERICAN UNITED LIFE INSURANCE COMPANY

	
  

	
 

	
Bank of New York

	
  

	
 

	
ABA #021000018

	
  

	
 

	
CREDIT A/C # GLA111566

	
  

	
 

	
A/C Name: American United Life Insurance Company

	
  

	
 

	
Account #:  186683

	
  

	
 

	
P&I Breakdown:  (Insert)

	
  

	
 

	
Reference:  PPN 171265 A@0, (Insert credit name)

 

Notices

All notices and communications, including notices with respect to payments and written confirmation of each such payment, to be addressed as first provided above.

 

Physical Delivery

	
  

	
 

	
Bank of New York

	
  

	
 

	
One Wall Street, 3rd Floor

	
  

	
 

	
New York, NY 10286

Ref:   American United Life Insurance Company, Account #186683

Attn: Anthony Saviano/Window A

cc:     Michele Morris/NYC Physical Desk on all correspondence

Name of Nominee in which Bonds are to be issued:  None

Taxpayer I.D. Number:  35-0145825

 

  

A-30

  

 

	
Name of and Address

of Purchaser

	 	
Principal Amount of Tranche A Bonds to Be Purchased

	 	 	
Principal Amount of Tranche B Bonds to Be Purchased

	 
	
The State Life Insurance Company

c/o American United Life Insurance Company

One American Square, Suite 305W

P.O. Box 368

Indianapolis, Indiana  46206

Attention:  Michael Bullock, Securities Department

Overnight Mailing Address:

250 W. North Street

Indianapolis, Indiana 46202

Attention:  Michael Bullock, Securities Department

	 	$	0	 	 	$	2,500,000	 

 

Payments

All payments on or in respect of the Bonds to be by bank wire transfer of Federal or other immediately available funds (identifying each payment as “Chugach Electric Association 4.75% First Mortgage Bonds, 2011 Series A, Tranche B, Due March 15, 2041, PPN 171265 A@0, principal, premium or interest”) to the following bank account:

	
  

	
 

	
THE STATE LIFE INSURANCE COMPANY

	
  

	
 

	
Bank of New York

	
  

	
 

	
ABA #021000018

	
  

	
 

	
CREDIT A/C # GLA111566

	
  

	
 

	
A/C Name: The State Life Insurance Company

	
  

	
 

	
Account #:  343761

	
  

	
 

	
P&I Breakdown:  (Insert)

	
  

	
 

	
Reference:  PPN 171265 A@0, (Insert credit name)

Notices

All notices and communications, including notices with respect to payments and written confirmation of each such payment, to be addressed as first provided above.

 

Physical Delivery

	
  

	
 

	
Bank of New York

	
  

	
 

	
One Wall Street, 3rd Floor

	
  

	
 

	
New York, NY 10286

	
  

	
 

	
Ref:  The State Life Insurance Company, c/o American United Life Insurance Company,

	
  

	
Account #343761

Attn: Anthony Saviano/Window A

cc: Michele Morris/NYC Physical Desk on all correspondence

Name of Nominee in which Bonds are to be issued:  None

Taxpayer I.D. Number:  35-0684263

 

  

A-31

  

 

	
Name of and Address

of Purchaser

	 	
Principal Amount of Tranche A Bonds to Be Purchased

	 	 	
Principal Amount of Tranche B Bonds to Be Purchased

	 
	
Pioneer Mutual Life Insurance Company

c/o American United Life Insurance Company

One American Square, Suite 305W

P.O. Box 368

Indianapolis, Indiana  46206

Attention:  Michael Bullock, Securities Department

Overnight Mailing Address:

250 W. North Street

Indianapolis, Indiana 46202

Attention:  Michael Bullock, Securities Department

	 	$	0	 	 	$	500,000	 

 

Payments

All payments on or in respect of the Bonds to be by bank wire transfer of Federal or other immediately available funds (identifying each payment as “Chugach Electric Association 4.75% First Mortgage Bonds, 2011 Series A, Tranche B, Due March 15, 2041, PPN 171265 A@0, principal, premium or interest”) to the following bank account:

	
  

	
 

	
PIONEER MUTUAL LIFE INSURANCE COMPANY

	
  

	
 

	
Bank of New York

	
  

	
 

	
ABA #021000018

	
  

	
 

	
CREDIT A/C # GLA111566

	
  

	
 

	
A/C Name: Pioneer Mutual Life Insurance Company

	
  

	
 

	
Account #:  186709

	
  

	
 

	
P&I Breakdown:  (Insert)

	
  

	
 

	
Reference:  PPN 171265 A@0, (Insert credit name)

 

Notices

All notices and communications, including notices with respect to payments and written confirmation of each such payment, to be addressed as first provided above.

 

Physical Delivery

	
  

	
 

	
Bank of New York

	
  

	
 

	
One Wall Street, 3rd Floor

	
  

	
 

	
New York, NY 10286

	
  

	
 

	
Ref:  Pioneer Mutual Life Insurance Company, c/o American United Life Insurance 

	
  

	
Company, Account #186709

Attn: Anthony Saviano/Window A

cc: Michele Morris/NYC Physical Desk on all correspondence

 

Name of Nominee in which Bonds are to be issued:  None

Taxpayer I.D. Number:  45-0220640

 

  

A-32

  

 

	
Name of and Address

of Purchaser

	 	
Principal Amount of Tranche A Bonds to Be Purchased

	 	 	
Principal Amount of Tranche B Bonds to Be Purchased

	 
	
Equitrust Life Insurance Company

c/o FBL Financial Group, Inc.

Attention:  Securities Department-Private Placements

5400 University Avenue

West Des Moines, IA 50266

Email:  privateplacements@FBLFinancial.com

	 	$	0	 	 	$	5,000,000	 

 

Payments

All payments on or in respect of the Bonds to be by bank wire transfer of Federal or other immediately available funds (identifying each payment as “Chugach Electric Association 4.75% First Mortgage Bonds, 2011 Series A, Tranche B, Due March 15, 2041, PPN 171265 A@0, principal premium or interest”) to:

 

	
  

	
 

	
JP Morgan Chase Bank

	
  

	
 

	
ABA No.:  021-000-021

	
  

	
 

	
A/C #9009002859

	
  

	
 

	
Account No. G10559 (Please do not put a space between G and Acct Number)

	
  

	
 

	
Reference:  PPN, Name of Issuer & Description; Principal and Interest Payment

	
  

	
 

	
Contact:  privateplacements@fblfinancial.com

 

Notices

All notices and communications, including notices with respect to payments and written confirmation of each such payment, to be addressed as first provided above

 

All other notices and communications to be addressed as first provided above.

 

Physical Delivery

	
  

	
 

	
JPMorgan Chase Bank, N.A.

	
  

	
 

	
4 Chase Metrotech Center, 3rd Floor

	
  

	
 

	
Brooklyn, New York 11245-0001

	
  

	
 

	
Attn:  Physical Receive Department

	
  

	
 

	
Reference:  G10559/Equitrust Life Insurance Co

Name of Nominee in which Bonds are to be issued:  Cudd & Co.

Taxpayer I.D. Number for CUDD & CO.:  13-6022143

Taxpayer I.D. Number for Equitrust Life Insurance Company:  42-1468417

 

  

A-33

  

 

	
Name of and Address

of Purchaser

	 	
Principal Amount of Tranche A Bonds to Be Purchased

	 	 	
Principal Amount of Tranche B Bonds to Be Purchased

	 
	
Farm Bureau Life Insurance Company

c/o FBL Financial Group, Inc.

Attention:  Securities Department-Private Placements

5400 University Avenue

West Des Moines, IA 50266

Email:  privateplacements@FBLFinancial.com

	 	$	0	 	 	$	2,000,000	 

 

Payments

All payments on or in respect of the Bonds to be by bank wire transfer of Federal or other immediately available funds (identifying each payment as “Chugach Electric Association 4.75% First Mortgage Bonds, 2011 Series A, Tranche B, Due March 15, 2041, PPN 171265 A@0, principal premium or interest”) to:

	
  

	
 

	
JP Morgan Chase Bank

	
  

	
 

	
ABA No.:  021-000-021

	
  

	
 

	
A/C #9009002859

	
  

	
 

	
Account No. G10557 (Please do not put a space between G and Acct Number)

	
  

	
 

	
Reference:  PPN, Name of Issuer & Description; Principal and Interest Payment

	
  

	
 

	
Contact:  privateplacements@fblfinancial.com

Notices

All notices and communications, including notices with respect to payments and written confirmation of each such payment, to be addressed as first provided above

 

All other notices and communications to be addressed as first provided above.

 

Physical Delivery

	
  

	
 

	
JPMorgan Chase Bank, N.A.

	
  

	
 

	
4 Chase Metrotech Center, 3rd Floor

	
  

	
 

	
Brooklyn, New York 11245-0001

	
  

	
 

	
Attn:  Physical Receive Department

	
  

	
 

	
Reference:  G10557/Farm Bureau Life Insurance Co

Name of Nominee in which Bonds are to be issued:  Cudd & Co.

Taxpayer I.D. Number for CUDD & CO.:  13-6022143

Taxpayer I.D. Number for Farm Bureau Life Insurance Company:  42-0623913

 

  

A-34

  

 

	
Name of and Address

of Purchaser

	 	
Principal Amount of Tranche A Bonds to Be Purchased

	 	 	
Principal Amount of Tranche B Bonds to Be Purchased

	 
	
Country Life Insurance Company

1705 N Towanda Avenue 

Bloomington, Illinois  61702

Attention:  Investments

Telephone:  (309) 821-6260

Fax:  (309) 821-6301

	 	$	0	 	 	$	3,000,000	 

 

Payments

 

All payments on or in respect of the Bonds to be by bank wire transfer of Federal or other immediately available funds to:

 

	
  

	
 

	
Northern Trust Chgo/Trust

	
  

	
 

	
ABA #071000152

	
  

	
 

	
Wire Account Number 5186041000

	
  

	
 

	
For Further Credit to: 26-02712

	
  

	
 

	
Account Name: Country Life Insurance Company

	
  

	
 

	
Representing P & I on (list security) [BANK]

 

	
  

	
 

	
Accompanying Information:  Chugach Electric Association 4.75% First Mortgage Bonds, 2011 Series A, Tranche B, Due March 15, 2041, PPN 171265 A@0, due date and application (as among principal, premium  and interest) of the payment being made.

 

Notices

 

All notices and communications to be addressed as first provided above, except notices with respect to payments and written confirmation of each such payment, to be addressed:  

	
  

	
 

	
Country Life Insurance Company

	
  

	
 

	
Attention:  Investment Accounting 

	
  

	
 

	
1705 N Towanda Avenue

	
  

	
 

	
Bloomington, Illinois  61702

	
  

	
 

	
Telephone:  (309) 821-6348

	
  

	
 

	
Fax:  (309) 821-2800

  

A-35

  

 

Physical Delivery

	
  

	
 

	
The Northern Trust Company of New York

	
  

	
 

	
Harborside Financial Center 10, Suite 1401

	
  

	
 

	
3 Second Street

	
  

	
 

	
Attn:  26-02712/Country Life Insurance Company

	
  

	
 

	
Jersey City, NJ 07311

	
  

	
 

	
Include Acct # and Name in cover letter as well

Name of Nominee in which Bonds are to be issued:  None

 

Taxpayer I.D. Number:  37-0808781 

 

  

A-36

  

 

	
Name of and Address

of Purchaser

	 	
Principal Amount of Tranche A Bonds to Be Purchased

	 	 	
Principal Amount of Tranche B Bonds to Be Purchased

	 
	
Cotton States Life Insurance Company

c/o Country Life Insurance Company

1705 N Towanda Avenue 

Bloomington, Illinois  61702

Attention:  Investments

Telephone:  (309) 821-6260

Fax:  (309) 821-6301

	 	$	0	 	 	$	1,000,000	 

 

Payments

 

All payments on or in respect of the Bonds to be by bank wire transfer of Federal or other immediately available funds to:

	
  

	
 

	
SUNTRUST BANKS

	
  

	
 

	
ABA Number 061000104 SunTrust Bank

	
  

	
 

	
Wire Account Number 9088003142

	
  

	
 

	
Account Name:  Income Collections

	
  

	
 

	
For Further Credit to:  Cotton States 1129997

	
  

	
 

	
Account Name:  Cotton States Life Insurance

	
  

	
 

	
Representing P & I on (list security) [BANK]

	
  

	
 

	
  

	
 

	
Accompanying Information:  Chugach Electric Association 4.75% First Mortgage Bonds, 2011 Series A, Tranche B, Due March 15, 2041, PPN 171265 A@0, due date and application (as among principal, premium  and interest) of the payment being made.

Notices

 

All notices and communications to be addressed as first provided above, except notices with respect to payments and written confirmation of each such payment, to be addressed:  

	
  

	
 

	
Cotton States Life Insurance Company

	
  

	
 

	
c/o Country Life Insurance Company

	
  

	
 

	
Attention:  Investment Accounting 

	
  

	
 

	
1705 N Towanda Avenue

	
  

	
 

	
Bloomington, Illinois  61702

	
  

	
 

	
Telephone:  (309) 821-6348

	
  

	
 

	
Fax:  (309) 821-2800

 

  

A-37

  

 

Physical Delivery

	
  

	
 

	
SunTrust Bank

	
  

	
 

	
Free Securities Movement & Control

	
  

	
 

	
Mail Code GA-Atl-3132

	
  

	
 

	
303 Peachtree Street NE, Suite 1520

	
  

	
 

	
Atlanta, GA 30308

	
  

	
 

	
Reference Acct:  1129997

Name of Nominee in which Bonds are to be issued:  None

 

Taxpayer I.D. Number:  58-0830929

 

  

A-38

  

 

	
Name of and Address

of Purchaser

	 	
Principal Amount of Tranche A Bonds to Be Purchased

	 	 	
Principal Amount of Tranche B Bonds to Be Purchased

	 
	
Phoenix Life Insurance Company

c/o Goodwin Capital Advisers

One American Row

Private Placement Department H-GW-1

Hartford, CT  06102

	 	$	0	 	 	$	2,000,000	 

 

Payments

 

All payments on or in respect of the Bonds to be by bank wire transfer of Federal or other immediately available funds (identifying each payment as “Chugach Electric Association 4.75% First Mortgage Bonds, 2011 Series A, Tranche B, Due March 15, 2041, PPN 171265 A@0 principal, premium or interest”) to:

 

	
  

	
 

	
JP Morgan Chase

	
  

	
 

	
New York, NY

	
  

	
 

	
ABA 021 000 021

	
  

	
 

	
Account Name:  Income Processing

	
  

	
 

	
Account Number:  900 9000 200

	
  

	
 

	
Reference:  Phoenix Life Insurance, G05123, Chugach Electric Association

 

Notices

 

All notices and communications, including notices with respect to payments and written confirmation of each such payment, to be addressed as first provided above.

All legal notices should be addressed to:

	
  

	
 

	
Phoenix Life Insurance Company

	
  

	
 

	
One American Row

	
  

	
 

	
Hartford, CT  06102

	
  

	
 

	
Attention:  Brad Buck

 

Physical Delivery

	
  

	
 

	
Phoenix Life Insurance Company

	
  

	
 

	
One American Row

	
  

	
 

	
Hartford, CT  06102

	
  

	
 

	
Attention:  Brad Buck

 

Name of Nominee in which Bonds are to be issued:  None

 

Taxpayer I.D. Number:  06-0493340

 

  

A-39

  

 

	
Name of and Address

of Purchaser

	 	
Principal Amount of Tranche A Bonds to Be Purchased

	 	 	
Principal Amount of Tranche B Bonds to Be Purchased

	 
	
PHL Variable Insurance Company

c/o Goodwin Capital Advisers

One American Row

Private Placement Department H-GW-1

Hartford, CT  06102

	 	$	0	 	 	$	1,000,000	 

 

Payments

 

All payments on or in respect of the Bonds to be by bank wire transfer of Federal or other immediately available funds (identifying each payment as “Chugach Electric Association 4.75% First Mortgage Bonds, 2011 Series A, Tranche B, Due March 15, 2041, PPN 171265 A@0 principal, premium or interest”) to:

 

	
  

	
 

	
JP Morgan Chase

	
  

	
 

	
New York, NY

	
  

	
 

	
ABA 021 000 021

	
  

	
 

	
Account Name:  Income Processing

	
  

	
 

	
Account Number:  900 9000 200

	
  

	
 

	
Reference:  Phoenix Variable, G09389, Chugach Electric Association

Notices

 

All notices and communications, including notices with respect to payments and written confirmation of each such payment, to be addressed as first provided above.

All legal notices should be addressed to:

	
  

	
 

	
Phoenix Life Insurance Company

	
  

	
 

	
One American Row

	
  

	
 

	
Hartford, CT  06102

	
  

	
 

	
Attention:  Brad Buck

Physical Delivery

	
  

	
 

	
Phoenix Life Insurance Company

	
  

	
 

	
One American Row

	
  

	
 

	
Hartford, CT  06102

	
  

	
 

	
Attention:  Brad Buck

 

Name of Nominee in which Bonds are to be issued:  None

Taxpayer I.D. Number:  06-1045829

 

  

A-40

  

 

	
Name of and Address

of Purchaser

	 	
Principal Amount of Tranche A Bonds to Be Purchased

	 	 	
Principal Amount of Tranche B Bonds to Be Purchased

	 
	
PHL Variable Insurance Company

c/o Goodwin Capital Advisers

One American Row

Private Placement Department H-GW-1

Hartford, CT  06102

	 	$	0	 	 	$	1,000,000	 

 

Payments

 

All payments on or in respect of the Bonds to be by bank wire transfer of Federal or other immediately available funds (identifying each payment as “Chugach Electric Association 4.75% First Mortgage Bonds, 2011 Series A, Tranche B, Due March 15, 2041, PPN 171265 A@0, principal, premium or interest”) to:

	
  

	
 

	
JP Morgan Chase

	
  

	
 

	
New York, NY

	
  

	
 

	
ABA 021 000 021

	
  

	
 

	
Account Name:  Income Processing

	
  

	
 

	
Account Number:  900 9000 200

	
  

	
 

	
Reference:  Phoenix Variable, G11923, Chugach Electric Association

Notices

 

All notices and communications, including notices with respect to payments and written confirmation of each such payment, to be addressed as first provided above.

All legal notices should be addressed to:

	
  

	
 

	
Phoenix Life Insurance Company

	
  

	
 

	
One American Row

	
  

	
 

	
Hartford, CT  06102

	
  

	
 

	
Attention:  Brad Buck

 

Physical Delivery

	
  

	
 

	
Phoenix Life Insurance Company

	
  

	
 

	
One American Row

	
  

	
 

	
Hartford, CT  06102

	
  

	
 

	
Attention:  Brad Buck

 

Name of Nominee in which Bonds are to be issued:  None

Taxpayer I.D. Number:  06-1045829

 

  

A-41

  

 

	
Name of and Address

of Purchaser

	 	
Principal Amount of Tranche A Bonds to Be Purchased

	 	 	
Principal Amount of Tranche B Bonds to Be Purchased

	 
	
National Mutual Benefit

c/o Prime Advisors, Inc.

Redmond Ridge Corporate Center

22635 NE Marketplace Drive, Suite 160

Redmond, WA 98053

Attention:  Scott Sell, Vice President

	 	$	0	 	 	$	2,000,000	 

 

Payments

All payments on or in respect of the Bonds to be by bank wire transfer of Federal or other immediately available funds (identifying each payment as “Chugach Electric Association 4.75% First Mortgage Bonds, 2011 Series A, Tranche B, Due March 15, 2041, PPN 171265 A@0, principal, premium or interest”) to:

	
  

	
 

	
Marshall & Ilsley Trust Company

	
  

	
 

	
ABA #075000051

	
  

	
 

	
DDA# 27006

	
  

	
 

	
Acct# 89-M010-01-6

	
  

	
 

	
ATTN:  Income Dept 8th Floor

	
  

	
 

	
Acct Name:  National Mutual Benefit

Notices

All notices and communications, including notices with respect to payments and written confirmation of each such payment, to be addressed to:

 

  

A-42

  

Marshall & Ilsley

Acct # 89-M010-01-6

Acct Name:  National Mutual Benefit

11270 West Park Place, Suite 400

Milwaukee, WI 53224

Attention:  Income Dept 8th Floor

Attention:  Bret Franz

Email:  bret.franz@micorp.com

Phone:  (414) 815-3819

  

With copies to:

  

National Mutual Benefit

6522 Grand Teton Plaza

P.O. Box 1527

Madison, WI 53701-1527

Attention:  Steven Reindl, Vice President of Operations

  

and

  

Prime Advisors, Inc.

100 Northfield Drive, 4th Floor

Windsor, CT 06095

Attention:  Lewis Leon, SVP/Investment Accounting

 

Physical Delivery

Marshall & Ilsley Trust Company N.A. as Trustee FBO

11270 W Park Place

Suite 400

Milwaukee, WI 53224

Attention:  Bret Franz

 

Name of Nominee in which Bonds are to be issued:  Marshall & Ilsley Trust Company custodian for the NATIONAL MUTUAL BENEFIT ACCOUNT FIXED INCOME

 

Taxpayer I.D. Number:  41-6370378

 

  

A-43

  

Schedule B

Defined Terms

 

As used herein, the following terms have the respective meanings set forth below or set forth in the Section hereof following such term:

 

“2011 Series A Bonds” is defined in Section 1 of this Agreement.

 

“Affiliate” means, at any time, and with respect to any Person, any other Person that at such time directly or indirectly through one or more intermediaries Controls, or is Controlled by, or is under common Control with, such first Person.  As used in this definition, “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. Unless the context otherwise clearly requires, any reference to an “Affiliate” is a reference to an Affiliate of the Company.

 

“Anti-Terrorism Order” means Executive Order No. 13224 of September 24, 2001, Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit or Support Terrorism, 66 U.S. Fed. Reg. 49, 079 (2001), as amended.

 

“Business Day” means for the purposes of any provision of this Agreement, any day other than a Saturday, a Sunday or a day on which commercial banks in New York, New York are required or authorized to be closed.

 

“Capital Lease” means, at any time, a lease with respect to which the lessee is required concurrently to recognize the acquisition of an asset and the incurrence of a liability in accordance with GAAP.

 

“Closing” is defined in Section 3.

 

“Code” means the Internal Revenue Code of 1986, as amended from time to time, and the rules and regulations promulgated thereunder from time to time.

 

“Collateral Filings” is defined in Section 4.11.

 

“Company” means Chugach Electric Association, Inc., an electric cooperative existing under the laws of the State of Alaska, or any successor that becomes such in the manner prescribed in Article 9 of the Indenture.

 

“Confidential Information” is defined in Section 18.

 

“Default” means an event or condition the occurrence or existence of which would, with the lapse of time or the giving of notice or both, become an Event of Default.

 

“Electronic Delivery” is defined in Section 7.1(a).

 

  

B-1

  

 

“Environmental Laws” means any and all Federal, state, local, and foreign statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution and the protection of the environment or the release of any materials into the environment, including but not limited to those related to Hazardous Materials.

 

“ERISA” means the Employee Retirement Income  Security Act of 1974, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect.

 

“ERISA Affiliate” means any trade or business  (whether or not incorporated) that is treated as a single employer together with the Company under section 414 of the Code.

 

“Event of Default” is defined in the Indenture.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

“Financing Agreements” means this Agreement, the Indenture (including, without limitation, the First Supplemental Indenture) and the 2011 Series A Bonds.

 

“First Supplemental Indenture” is defined in Section 1.

 

“Form 10-K” is defined in Section 7.1(b).

 

“Form 10-Q” is defined in Section 7.1(a).

 

“GAAP” means generally accepted accounting principles as in effect from time to time in the United States of America.

 

“Governmental Authority” means

 

(a)the government of

 

(i)  the United States of America or any State or other political subdivision thereof, or

 

(ii)  any other jurisdiction in which the Company or any Subsidiary conducts all or any part of its business, or which asserts jurisdiction over any properties of the Company or any Subsidiary, or

 

(b)any entity exercising executive, legislative, judicial, regulatory or administrative functions of, or pertaining to, any such government.

 

“Guaranty”  means, with respect to any Person, any obligation (except the endorsement in the ordinary course of business of negotiable instruments for deposit or collection) of such Person guaranteeing or in effect guaranteeing any indebtedness, dividend or other obligation of any other Person in any manner, whether directly or indirectly, including (without limitation) obligations incurred through an agreement, contingent or otherwise, by such Person:

  

B-2

  

 

(a)to purchase such indebtedness or obligation or any property constituting security therefor;

 

(b)to advance or supply funds (i) for the purchase or payment of such indebtedness or obligation, or (ii) to maintain any working capital or other balance sheet condition or any income statement condition of any other Person or otherwise to advance or make available funds for the purchase or payment of such indebtedness or obligation;

 

(c)to lease properties or to purchase properties or services primarily for the purpose of assuring the owner of such indebtedness or obligation of the ability of any other Person to make payment of the indebtedness or obligation; or

 

(d)otherwise to assure the owner of such indebtedness or obligation against loss in respect thereof.

 

In any computation of the indebtedness or other liabilities of the obligor under any Guaranty, the indebtedness or other obligations that are the subject of such Guaranty shall be assumed to be direct obligations of such obligor.

 

“Hazardous Material” means any and all pollutants, toxic or hazardous wastes or other substances that might pose a hazard to health and safety, the removal of which may be required or the generation, manufacture, refining, production, processing, treatment, storage, handling, transportation, transfer, use, disposal, release, discharge, spillage, seepage or filtration of which is or shall be restricted, prohibited or penalized by any applicable law including, but not limited to, asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls, petroleum, petroleum products, lead based paint, radon gas or similar restricted, prohibited or penalized substances.

 

“holder” means, with respect to any 2011 Series A Bond, the Person in whose name such 2011 Series A Bond is registered in the register maintained by the Trustee.

 

“Indebtedness” with respect to any Person means, at any time, without duplication,

 

(a)its liabilities for borrowed money and its redemption obligations in respect of mandatorily redeemable Preferred Stock;

 

(b)its liabilities for the deferred purchase price of property acquired by such Person (excluding accounts payable arising in the ordinary course of business but including all liabilities created or arising under any conditional sale or other title retention agreement with respect to any such property);

 

(c)(i) all liabilities appearing on its balance sheet in accordance with GAAP in respect of Capital Leases and (ii) all liabilities which would appear on its balance sheet in accordance with GAAP in respect of Synthetic Leases assuming such Synthetic Leases were accounted for as Capital Leases;

 

  

B-3

  

 

(d)all liabilities for borrowed money secured by any Lien with respect to any property owned by such Person (whether or not it has assumed or otherwise become liable for such liabilities);

 

(e)all its liabilities in respect of letters of credit or instruments serving a similar function issued or accepted for its account by banks and other financial institutions (whether or not representing obligations for borrowed money);

 

(f)any Guaranty of such Person with respect to liabilities of a type described in any of clauses (a) through (e) hereof.

 

“Indenture” is defined in Section 1.

 

“Institutional Investor” means (a) any Purchaser of a 2011 Series A Bond, (b) any holder of a 2011 Series A Bond holding (together with one or more of its affiliates) more than 5% of the aggregate principal amount of the 2011 Series A Bonds then outstanding, (c) any bank, trust company, savings and loan association or other financial institution, any pension plan, any investment company, any insurance company, any broker or dealer, or any other similar financial institution or entity, regardless of legal form, and (d) any Related Fund of any holder of any 2011 Series A Bond.

 

“Lien” means, with respect to any Person, any mortgage, lien, pledge, charge, security interest or other encumbrance, or any interest or title of any vendor, lessor, lender or other secured party to or of such Person under any conditional sale or other title retention agreement or Capital Lease, upon or with respect to any property or asset of such Person (including in the case of stock, stockholder agreements, voting trust agreements and all similar arrangements).

 

“Make-Whole Amount” is defined in the First Supplemental Indenture.

 

“Material” means material in relation to the business, operations, affairs, financial condition, assets or properties of the Company and its Subsidiaries taken as a whole.

 

“Material Adverse Effect” means:

 

(a)when used in Sections 4, 5 and 7, a material adverse effect on (i) the business, operations, affairs, financial condition, assets or properties of the Company, (ii) the ability of the Company to perform its obligations under this Agreement, the 2011 Series A Bonds or the Indenture or (iii) the validity or enforceability of this Agreement, the 2011 Series A Bonds or the Indenture; and

 

(b)when used in Section 8, a material adverse effect on (i) the ability of the Company to perform its obligations under this Agreement, the 2011 Series A Bonds or the Indenture or (ii) the validity or enforceability of this Agreement, the 2011 Series A Bonds or the Indenture.

  

B-4

  

 

“Member” means each holder of a membership or other equity interest in the Company.

 

“Memorandum” is defined in Section 5.3.

 

“Multiemployer Plan” means any Plan that is a “multiemployer plan” (as such term is defined in section 4001(a)(3) of ERISA).

 

“NAIC” means the National Association of Insurance Commissioners or any successor thereto.

 

“Officer’s Certificate” means a certificate of a Senior Financial Officer or of any other officer of the Company whose responsibilities extend to the subject matter of such certificate.

 

“PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA or any successor thereto.

 

“Person” means an individual, partnership, corporation, limited liability company, association, trust, unincorporated organization, business entity or Governmental Authority.

 

“Plan” means an “employee benefit plan” (as defined in section 3(3) of ERISA) subject to Title I of ERISA that is or, within the preceding five years, has been established or maintained, or to which contributions are or, within the preceding five years, have been made or required to be made, by the Company or any ERISA Affiliate or with respect to which the Company or any ERISA Affiliate may have any liability.

 

“Preferred Stock” means any class of capital stock of a Person that is preferred over any other class of capital stock (or similar equity interests) of such Person as to the payment of dividends or the payment of any amount upon liquidation or dissolution of such Person.

 

“property” or “properties” means, unless otherwise specifically limited, real or personal property of any kind, tangible or intangible, choate or inchoate.

 

“PTE” is defined in Section 6.2(a).

 

“Purchaser” is defined in the first paragraph of this Agreement.

 

“Qualified Institutional Buyer” means any Person who is a “qualified institutional buyer” within the meaning of such term as set forth in Rule 144A(a)(1) under the Securities Act.

 

“Related Fund” means, with respect to any holder of any 2011 Series A Bond , any fund or entity that (i) invests in Securities or bank loans, and (ii) is advised or managed by such holder, the same investment advisor as such holder or by an affiliate of such holder or such investment advisor.

  

B-5

  

 

“Required Holders” means, at any time, the holders of more than 50% in principal amount of the 2011 Series A Bonds at the time outstanding (exclusive of 2011 Series A Bonds then owned by the Company or any of its Affiliates).

 

“Responsible Officer” means any Senior Financial Officer and any other officer of the Company with responsibility for the administration of the relevant portion of this Agreement.

 

“SEC” shall mean the Securities and Exchange Commission of the United States, or any successor thereto.

 

“Securities” or “Security” shall have the meaning specified in Section 2(1) of the Securities Act.

 

“Securities Act” means the Securities Act of 1933, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect.

 

“Senior Financial Officer” means the chief financial officer, principal accounting officer, treasurer or comptroller of the Company.

 

“Subsidiary” means, as to any Person, any other Person in which such first Person or one or more of its Subsidiaries or such first Person and one or more of its Subsidiaries owns sufficient equity or voting interests to enable it or them (as a group) ordinarily, in the absence of contingencies, to elect a majority of the directors (or Persons performing similar functions) of such second Person, and any partnership or joint venture if more than a 50% interest in the profits or capital thereof is owned by such first Person or one or more of its Subsidiaries or such first Person and one or more of its Subsidiaries (unless such partnership or joint venture can and does ordinarily take major business actions without the prior approval of such Person or one or more of its Subsidiaries).  Unless the context otherwise clearly requires, any reference to a “Subsidiary” is a reference to a Subsidiary of the Company.

 

“SVO” means the Securities Valuation Office of the NAIC or any successor to such Office.

 

“Synthetic Lease” means, at any time, any lease (including leases that may be terminated by the lessee at any time) of any property (a) that is accounted for as an operating lease under GAAP and (b) in respect of which the lessee retains or obtains ownership of the property so leased for United States federal income tax purposes, other than any such lease under which such Person is the lessor.

 

“Trustee” means U.S. Bank National Association, as trustee under the Indenture, and its successors and assigns that becomes such in the manner prescribed in Article X of the Indenture.

 

“UCC” means, the Uniform Commercial Code as enacted and in effect from time to time in the state whose laws are treated as applying to the Trust Estate.

 

“USA Patriot Act” means United States Public Law 107-56, Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect.

  

B-6

  

 

Schedule 4.11

Collateral Filings

Recording of Second Supplemental Indenture of Trust dated January 20, 2011, between U.S. Bank National Association, as trustee (the “Trustee”), and Chugach Electric Association, Inc., in the real property records of each of the following Recording Districts of the State of Alaska:  Anchorage, Palmer and Kenai.

Recording of the First Supplemental Indenture of Trust dated as of January 20, 2011, to the Second Amended and Restated Indenture of Trust dated as of January 20, 2011, between the Trustee and Chugach Electric Association, Inc., in the real property records of each of the following Recording Districts of the State of Alaska:  Anchorage, Palmer and Kenai.

Filing of a UCC financing statement showing Chugach Electric Association, Inc., as debtor (and identifying the debtor as a transmitting utility), and the Trustee, as secured party, in UCC records of the Alaska Department of Natural Resources, Support Services Division, UCC Central.

 

Schedule 4.11

(to the Bond Purchase Agreement)

  

  

  

Schedule 5.3

Disclosure Documents

 

	
·  

	
Annual Report on Form 10-K for the fiscal year ended December 31, 2009

 

	
·  

	
Quarterly Report on Form 10-Q for the quarter ended June 30, 2010

 

	
·  

	
Current Report on Form 8-K dated July 30, 2010

Schedule 5.3

(to Bond Purchase Agreement)

  

  

  

Schedule 5.5

Financial Statements

Financial statements accompanying Form 10-K of the Company filed with the SEC for fiscal year ending December 31, 2010.

Financial statements accompanying Form 10-Q of the Company filed with the SEC for the fiscal quarter ended June 30, 2010.

Schedule 5.5

(to Bond Purchase Agreement)

  

  

  

Schedule 5.7

Government Authorizations

 

None.

Schedule 5.7

(to Bond Purchase Agreement)

  

  

  

Schedule 5.15(a)

Existing Indebtedness

The following sets forth a complete and correct list of all outstanding indebtedness of Chugach Electric Association, Inc. as of June 30, 2010.

	  	 	
Balance

	 	 	
Limit

	 
	  	 	 	 	 	 	 
	
2001 Series A Bonds

	 	$	150,000,000	 	 	$	150,000,000	 
	  	 	 	 	 	 	 	 	 
	
2002 Series A Bonds

	 	$	120,000,000	 	 	$	120,000,000	 
	  	 	 	 	 	 	 	 	 
	
CoBank Promissory Notes

	 	$	38,322,744	 	 	$	38,322,744	 
	  	 	 	 	 	 	 	 	 
	
Commercial Paper

	 	$	62,000,000	 	 	$	300,000,000	 
	  	 	 	 	 	 	 	 	 
	
National Rural Utilities Cooperative Finance Corporation

	 	$	0	 	 	$	50,000,000	 
	
(NRUCFC) Line of Credit Agreement

	 	 	 	 	 	 	 	 

 

Schedule 5.15(a)

(to Bond Purchase Agreement)

  

  

  

Schedule 5.15(b)

Restrictions on Indebtedness

 

	
1.  

	
Second Amended and Restated Indenture of Trust dated as of January 20, 2011, by and between Chugach Electric Association, Inc. and U.S. Bank National Association, as Trustee, as amended and supplemented by First Supplemental Indenture of Trust dated January 20, 2011.

 

	
2.  

	
Credit Agreement by and among Chugach Electric Association, Inc., National Rural Utilities Cooperative Finance Corporation, KeyBank National Association, Bank of America, N.A., JPMorgan Chase Bank, N.A., Bank of Montreal, Goldman Sachs Bank USA, Bank of Taiwan, Los Angeles Branch, CoBank, ACB, and Chang Hua Commercial Bank, Ltd., Los Angeles Branch, dated as of November 17, 2010.

 

	
3.  

	
Amended and Restated Master Loan Agreement (MLA No. 000976A) between Chugach Electric Association, Inc. and CoBank, ACB dated as of January 19, 2011.

 

	
4.  

	
Revolving Line of Credit Agreement between Chugach Electric Association, Inc. and National Rural Utilities Cooperative Finance Corporation dated October 17, 2007 (Loan No. AK008-R-5102), as amended by Amendment to Revolving Line of Credit Agreement between Chugach Electric Association, Inc. and the National Rural Utilities Cooperative Finance Corporation effective December 22, 2008.

 

Schedule 5.15(b)

(to Bond Purchase Agreement)

  

  

  

Exhibit A

Form of New Indenture

[See attached]

 

Exhibit A

(to Bond Purchase Agreement)

  

  

  

See the Second Amended and Restated Indenture of Trust filed as Exhibit 4.18 to this 2010 Form 10-K Annual Report.

 

A-1

Exhibit A

(to Bond Purchase Agreement)

  

  

  

Exhibit B

First Supplemental Indenture

[See attached]

 

Exhibit B

(to Bond Purchase Agreement)

  

  

  

See the First Supplemental Indenture to the Second Amended and Restated Indenture of Trust filed as Exhibit 4.19 to this 2010 Form 10-K Annual Report.

B-1 

Exhibit B

(to Bond Purchase Agreement)

  

  

  

Purchasers of Chugach Electric Association, Inc. First Mortgage Bonds, 2011 Series A

January 21, 2011

Page 1

Form of Opinion of Special Counsel

to the Company

 

[See attached]

Exhibit 4.4(a)(i)

(to Bond Purchase Agreement)

  

  

  

 

January 21, 2011

 

 

Via Federal Express

 

Each of the Purchasers Listed in Exhibit A to the Bond Purchase Agreement

c/o Chapman & Cutler LLP

111 West Monroe

Chicago, IL  60603

Attention: James R. Nelson

	
  

	
Re:Bond Purchase Agreement dated January 21, 2011, among Chugach Electric Association, Inc. and the Purchasers Listed in Exhibit A Thereto (the “Purchasers”) Relating to Issuance of $90,000,000 4.20% First Mortgage Bonds, 2011 Series A, and $185,000,000 4.75% First Mortgage Bonds, 2011 Series A (“Bond Purchase Agreement”)

	
  

	
Ladies and Gentlemen:

We have acted as special counsel to Chugach Electric Association, an Alaskan electric cooperative (the “Company”), in connection with the transactions contemplated by the above- referenced Bond Purchase Agreement.  This opinion is provided to you at the request of the Company pursuant to Section 4.4 of the Bond Purchase Agreement.  Capitalized terms used and not otherwise defined in this opinion letter have the meanings defined in the Bond Purchase Agreement.  References in this opinion letter to the “Alaska UCC” are to the Uniform Commercial Code currently in effect in the State of Alaska.

The law covered by the opinions expressed herein is limited to: (i) the laws of the State of Alaska with respect to the opinions expressed in paragraphs C-1 through C-3, C-4 and C-5 (insofar as they relate to the Indenture), C-6, C-7, C-8 and C-12 through C-14; (ii) the laws of the State of New York with respect to the opinions expressed in paragraphs C-4 and C-5 (insofar as they relate to the Bond Purchase Agreement and the Series 2011A Bonds), C-7 and C-8; and (iii) the federal laws of the United States of America with respect to the opinions expressed in paragraphs C-9 through C-11 and C-15.

This opinion letter is to be interpreted in accordance with the Guidelines for the Preparation of Closing Opinions (including the appended Legal Opinion Principles) issued by the Committee on Legal Opinions of the American Bar Association’s Business Law Section as published in 57 Business Lawyer 875 (February 2002) and the Statement on the Role of Customary Practice in the Preparation and Understanding of Third-Party Legal Opinions as published in 63 Business Lawyer 1277 (August 2008).

 

  

  

  

Purchasers of Chugach Electric Association, Inc. First Mortgage Bonds, 2011 Series A

January 21, 2011

Page 2

A.Financing Agreements and Matters Examined

In connection with this opinion letter, we have examined originals, or copies certified or otherwise identified to our satisfaction, of such documents, records, certificates and statements of government officials, officers, and other representatives of the persons referred to therein, and such other documents as we have deemed relevant or necessary as the basis for the opinions herein expressed, including the following:

A-1Bond Purchase Agreement.

A-2 Second Amended and Restated Indenture of Trust dated as of January 20, 2011, between the Company and U.S. Bank National Association, as Trustee (the “Trustee”), as amended by First Supplemental Indenture of Trust dated as of January 20, 2011, between the Company and U.S. Bank National Association, as Trustee (as so amended, the “Indenture”), relating to real property described in Exhibit A attached thereto (the “Mortgaged Property”).

A-3Bonds in the aggregate amount of $275,000,000 consisting of an aggregate principal amount of $90,000,000 of First Mortgage Bonds, 2011 Series A, due March 15, 2031 and an aggregate principal amount of $185,000,000 of First Mortgage Bonds, 2011 Series A, due March 15, 2041, in each case signed by the Company but not yet authenticated by the Trustee (collectively, the “2011 Series A Bonds”).

A-5File-stamped copy of Uniform Commercial Code financing statement naming the Company as debtor and as a transmitting utility, and the Trustee as secured party (the “Financing Statement”), as filed in the UCC Section of the Department of Natural Resources of the State of Alaska (the “Filing Office”) on January 20, 2011;

A-6File-stamped copies of each of the Second Amended and Restated Indenture of Trust dated as of January 20, 2011, and the First Supplement to Second and Amended Restated Indenture dated as of January 20, 2011, in each case as recorded in the real property recording offices in each of the Anchorage, Palmer and Kenai Recording Districts on January 20, 2011 (or oral confirmation of such recordings, including recording numbers, from First American Title Insurance Company);

A-7Articles of incorporation and bylaws of the Company, certified to us by an officer of the Company as being complete and in full force and effect as of the date of this opinion.

A-8Resolutions of the Board of Directors of the Company certified to us by an officer of the Company as constituting all records of proceedings and actions of the Company relating to the transactions contemplated by the Financing Agreements (as defined below).

A-9A Certificate of Compliance with respect to the Company issued by the Alaska Department of Commerce and Economic Development, dated January 12, 2011.

  

  

  

Purchasers of Chugach Electric Association, Inc. First Mortgage Bonds, 2011 Series A

January 21, 2011

Page 3

A-10Certificate of an officer of the Company as to certain factual matters on which we have relied in giving this opinion, including that the times-interest-earned ratio most recently approved by the Regulatory Commission of Alaska for the Company is not less than 1.10.

The documents listed in A-1 through A-3 are herein collectively referred to as the “Financing Agreements.”

B.Assumptions

For purposes of this opinion letter, we have relied on customary assumptions as well as certain assumptions peculiar to Alaska or New York law, including the following assumptions:

B-1The descriptions of the collateral in the Financing Agreements and the Financing Statement (and any schedules and exhibits thereto) are accurate and sufficiently describe the property intended to be covered thereby.

B-2Value has been given to the Company under the Financing Agreements.

B-3Each of the Series 2011A Bonds has been duly authenticated by the Trustee in accordance with the terms of the Indenture.

B-4None of the transactions contemplated by the Financing Agreements is a consumer transaction and none of the collateral is a commercial tort claim, as such terms are defined in Section 9A-102 of the Alaska UCC.

Our opinion expressed in Paragraph C-1 as to the status of the Company under the laws of the State of Alaska is based solely upon the Certificate of Compliance enumerated above.  We have made no additional investigation after the date of that certificate in rendering our opinion expressed in Paragraph C-1 below.

Whenever a statement herein is qualified by the phrase “to our knowledge,” or by any other similar phrase, or where it is noted that nothing has been brought to our attention, it means that the opinion stated is based solely on the conscious awareness of information by one or more of the following persons as to the matters being opined on: (i) the attorney who signs the opinion letter and (ii) the attorneys at our firm who have been actively involved in negotiating the transaction, preparing the Financing Agreements, or preparing this opinion letter.  We have not undertaken any investigation to determine the accuracy of the matters covered by any such statement and any limited inquiry undertaken by us during the preparation of this opinion letter should not be regarded as such an investigation.  No inference as to our knowledge of any matters bearing on the accuracy of the facts underlying any such statement should be drawn from the fact of our representation of the Company.

 

  

  

  

Purchasers of Chugach Electric Association, Inc. First Mortgage Bonds, 2011 Series A

January 21, 2011

Page 4

C.Opinions

Based on the foregoing examinations and assumptions and subject to the qualifications and exclusions stated below, we are of the opinion that:

C-1The Company is an electric cooperative utility validly existing under Alaska law.

C-2The Company has corporate power and authority to enter into, and to perform its obligations under, each of the Financing Agreements, and to own its properties and to carry on its business as, to our knowledge, it is now conducted.

C-3The Company has authorized, by all necessary corporate action on the part of the Company, the execution and delivery of each of the Financing Agreements.

C-4The Company has duly executed and delivered each of the Financing Agreements.

C-5Each of the Financing Agreements constitutes the valid and binding obligation of the Company, enforceable against the Company in accordance with its terms.

C-6The execution and delivery by the Company of, and the performance by the Company of the transactions contemplated by, each of the Financing Agreements do not violate the Company’s Articles of Incorporation or Bylaws.

C-7The execution and delivery by the Company of, and the performance of the transactions contemplated by, each of the Financing Agreements (including the issue and sale of the Series 2011A Bonds) are not prohibited by, nor do they violate any applicable statutes or regulations of any governmental agency or body having jurisdiction over the Company or any of its properties, or any order of any agency or body having jurisdiction over the Company of which we have knowledge.

C-8No consent, approval, authorization, order, license, filing, registration or qualification of or with any governmental agency or body having jurisdiction over the Company or any of its properties is required for execution and delivery of the Financing Agreements and consummation by the Company of the transactions contemplated by the Bond Purchase Agreement, including the issue and sale of the Series 2011A bonds pursuant to the Indenture, except for the recordation of the Indenture and the filing of the Financing Statements and such consents, approvals, authorizations, licenses, filings, registrations or qualifications as may be required under state securities or Blue Sky laws in connection with the offering and purchase of the Series 2011A Bonds.

C-9Assuming the accuracy of the representations contained in Sections 5.13 and 6.1 of the Agreement, no registration of the Series 2011A Bonds under the Securities Act is required for the offer and sale of the Series 2011A Bonds in the manner contemplated by the Bond Purchase Agreement.

 

  

  

  

Purchasers of Chugach Electric Association, Inc. First Mortgage Bonds, 2011 Series A

January 21, 2011

Page 5

C-10The Company is not an “investment company”, or a company “controlled” by an “investment company”, under the Investment Company Act of 1940, as amended.

C-11Neither the execution, delivery and performance of the Agreement, nor the issue and sale of the Series 2011A Bonds, violates Regulations T, U or X of the Federal Reserve Board.

C-12The Indenture creates in the Trustee’s favor, as security for all obligations of the Company stated in the Indenture to be so secured, a valid lien on the Mortgaged Property, and a security interest in fixtures included therein, to the extent that the Company has rights in the Mortgaged Property.

C-13The Indenture creates in the Lender’s favor, as security for all obligations of the Company under the Financing Agreements that are stated in Security Agreement to be so secured, a security interest in the collateral described therein (except that described only by reference to “all the Company’s assets” or “all the Company’s personal property” or words of similar import) to the extent that (i) the Company has rights in or the power to transfer such collateral and (ii) creation of a security interest in such collateral is governed by Article 9 of the Alaska UCC (the “Article 9 Collateral”).

C-14The Trustee has acquired, for the benefit of the Purchasers, a perfected security interest in that portion of the Article 9 Collateral in which a security interest can be perfected by filing a financing statement under the Alaska UCC.

C-15No qualification of the Indenture under the Trust Indenture Act of 1939, as amended, is required in connection with the offer and sale of the 2011 Series A Bonds by the Company to the Purchasers in the manner contemplated by the Bond Purchase Agreement.

D. Qualifications

The opinions set forth herein are subject to customary qualifications as well as qualifications specific to Alaska or New York law, some of which are noted below:

D-1The effect of bankruptcy, insolvency, reorganization, receivership, moratorium, fraudulent transfer and other similar laws affecting the rights and remedies of creditors generally, and the effect of general principles of equity, whether applied by court of law or equity.

D-2Without limiting the other qualifications set forth in this opinion letter, certain provisions contained in the Financing Agreements may not be enforceable, but such unenforceability will not render any of the Financing Agreements invalid as a whole or preclude:

 

  

  

  

Purchasers of Chugach Electric Association, Inc. First Mortgage Bonds, 2011 Series A

January 21, 2011

Page 6

	
(i)

	
Judicial enforcement of the Company’s obligation to repay the principal amount of advances made under the Financing Agreements, together with interest thereon (to extent not deemed a penalty), as provided in the Financing Agreements;

	
  (ii)

	
Upon written notice to the Company, acceleration of the Company’s obligation to repay such principal, together with such interest, upon default in the payment of such principal or interest or upon a continuing material default by the Company in the performance of any other enforceable obligation under the Financing Agreements (to the extent the Financing Agreements provide for such acceleration); or

	
  (iii)

	
Foreclosure in accordance with applicable laws of the State of Alaska of any lien or security interest created by the Financing Agreements, either upon maturity or upon acceleration under circumstances described in clause (ii) above.

 

  D-3The following Alaska statutes and court decisions may operate to limit further the enforceability of certain provisions of the Indenture and other Financing Agreements:

	
  (i)

	
Alaska Statute 9.45.200, which prohibits simultaneous actions for recovery of a debt secured by a mortgage or deed of trust, and an action foreclosing on such mortgage or deed of trust, and prohibits a subsequent action for foreclosure of a lien unless judgment was given on the debt in the earlier action and execution on that judgment is returned unsatisfied in whole or in part.

 

	

  (ii)  

	

Alaska Statute 34.20.100, which prohibits any action or proceeding for a deficiency on an obligation secured by a deed of trust after a foreclosure pursuant to Alaska Statute 34.20.070-34.20.130, Alaska’s non-judicial foreclosure statute.  This statute “limits the creditor’s rights to pursue further legal action or process against his debtor for any deficiency in the obligation following a non-judicial foreclosure of the property.  The limitation does not bar the retention of additional security specifically pledged on the obligation.”  Hull v. Alaska Federal Savings & Loan Assoc, 658 P.2d 122, 125 (Alaska 1983).

 

	

  (iii) 

	

Alaska Statute 34.20.070, which allows cure of a default during the pendency of a non-judicial foreclosure, causing the non-judicial sale to be discontinued upon such cure, even though the obligations had been declared accelerated.  The statute, however, provides that after two such cures of the same deed of trust, the trustee may elect to refuse payment and continue the sale.

 

	

  (iii) 

	

Alaska Statute 34.20.160, which provides that if a lender wishes to retain the option to sue on a note secured by a mortgage or deed of trust and obtain a personal judgment against the mortgage or trustor and any other party bound by the note, without first foreclosing the mortgage or deed of trust, the note must

 

 

  

  

  

Purchasers of Chugach Electric Association, Inc. First Mortgage Bonds, 2011 Series A

January 21, 2011

Page 7

	
  

	
affirmatively so advise the mortgagor or trustor and any other party bound by the note.  The statute provides that the following language in a note is sufficient:

	
  

	
The mortgage or trustor (borrower) is personally obligated and fully liable for the amount due under the note.  The mortgage or beneficiary (lender) has the right to sue on the note and obtain a personal judgment against the mortgagor or trustor for satisfaction of the amount due under the note either before or after a judicial foreclosure of the mortgage or deed of trust under AS 09.45.170 – 09.45.220.

	
  (v)  

	
The doctrine of res judicata and the “rule prohibiting splitting a cause of action,” as adopted by the courts of the State of Alaska, including as set forth in Tolstrup v. Miller, 726 P.2d 1304, 1306-07 (Alaska 1986) which holds that a second suit is barred “when the matter therein could have been decided in the first suit,” including claims that could have been brought, but were not, and Osbourne v. Buckman, 993 P.2d 409, 412 (Alaska 1999), which holds that all claims arising out of a single transaction must be brought in a single suit, and those that are not become extinguished by the judgment in the suit in which some of the claims were brought.

	
      (vi)

	
The ability of parties to a deed of trust or assignment of leases, by reciting that the assignment of rents is immediately perfected and choate, to modify the general principle of law, especially as to the rights of third parties, adopted by the Alaska Supreme Court in Bevins v. Peoples Bank and Trust Co., 671 P.2d 875, 879 (Alaska 1983) that “a rent clause in a deed of trust, which allows the beneficiary to collect rents upon default to satisfy the secured debt, does not automatically assign the rents accruing after the date of default to the beneficiary.  The beneficiary must take some action acquire possession of the property or rents before the rent clause becomes operative.”  Nevertheless, it is common for deeds of trust and assignments of leases in Alaska to recite that the assignment of rents is immediately effective, with the idea of staking out a position favorable to the beneficiary which might or might not hold up if challenged.

	
      (vii)

	
The enforceability of any judgment rendered by the foreign jurisdiction pursuant to a forum selection clause directing the parties to litigate issues concerning real property located in the State of Alaska in another forum in light of the decision adopted by the Alaska Supreme Court in Abadou v. Trad, 624 P.2d 287 (Alaska 1981) where the Alaska Supreme Court had occasion to consider the effect of a forum selection clause designating Lebanon as the forum for resolution of all claims arising out of a contract respecting joint ownership of lands located in Alaska.  The Alaska Supreme Court first determined there was no statute containing “language of exclusivity” specifically prohibiting the resolution of such actions in another forum.  Id. at 290.  Therefore, absent evidence of some other factor rendering such a result inequitable (such as inequality of bargaining power), the forum selection clause prevailed over the venue statute.  Id. at 290-91.

	
  

	
The court also rejected the argument that the clause ousted Alaska courts of rightful jurisdiction, and found that the clause was not per se void.  Id. at 290.  The court noted, however, that the Lebanese court would not have jurisdiction to order a partition or judicial sale as requested in the plaintiff’s complaint, noting that “[t]he only state which can, by operation of law and apart from the act of the parties, transfer title in land out of one person and into another is the state where the land lies.”  Id. at 291 n.6 (quoting R. Leflar, American Conflicts of law § 173 (3d ed. 1977)).  However, the Lebanese court could, by virtue of its in personam jurisdiction over the parties, order the parties to execute deeds to the property as among themselves, or order other relief appropriate under the contract.  Id.  The court noted that the fact that the case must be brought in a Lebanese court in the first instance did not necessarily mean that the Lebanese judgment would be effective in Alaska, and that “only if [the plaintiff] cannot obtain relief in that forum should he be able to re-file his action in an Alaskan court.”  Id. at 292-93.

 

  

  

  

Purchasers of Chugach Electric Association, Inc. First Mortgage Bonds, 2011 Series A

January 21, 2011

Page 8

  D-4The courts of the States of Alaska and New York may consider extrinsic evidence surrounding the making of the Financing Agreements to ascertain the intent of the parties in using the language employed therein and may incorporate additional or supplementary terms into the Financing Agreements in order to effectuate the intent of the parties.

E.Exclusions

The opinions set forth herein are subject to customary exclusions, including the following matters as to which we express no opinion:

E-1The effect of, or compliance with, any federal or state securities laws, except to the extent specifically provided in paragraphs C-9 and C-10.

E-2The effect of, or compliance with, any land use, zoning, environmental, health and safety, building code or human disabilities laws, rules or regulations.

E-3The perfection of a security interest in as-extracted collateral, timber to be cut or collateral represented by a certificate of title.

E-4The priority of any mortgage lien or security interest.

This opinion letter is delivered as of its date and without any undertaking to advise you of any changes of law or fact that occur after the date of this opinion letter even though the changes may affect the legal analysis, a legal conclusion or information confirmed in this opinion letter.

 

  

  

  

Purchasers of Chugach Electric Association, Inc. First Mortgage Bonds, 2011 Series A

January 21, 2011

Page 9

 

This opinion letter is rendered only to you and is solely for your benefit and the benefit of successor holders of the 2011 Series A Bonds in connection with the transaction contemplated by the Financing Agreements.  This opinion letter may not be used or relied on for any other purpose or by any other person without our prior written consent.

Very truly yours,

 

  

  

  

Form of Opinion of General Counsel

to the Company

[See attached]

Exhibit 4.4(a)(ii)

(to Bond Purchase Agreement)

  

  

  

 

January 21, 2011

Each of the Purchasers Listed in Exhibit A to the Bond Purchase Agreement

c/o Chapman & Cutler LLP

111 West Monroe

Chicago, IL  60603

Attention: James R. Nelson

	
  

	
Re:Bond Purchase Agreement dated January 21, 2011, among Chugach Electric Association, Inc. and the Purchasers Listed in Exhibit A Thereto (the “Purchasers”) Relating to Issuance of $90,000,000 4.20% First Mortgage Bonds, 2011 Series A, and $185,000,000 4.75% First Mortgage Bonds, 2011 Series A (“Bond Purchase Agreement”)

	
  

	
Ladies and Gentlemen:

I am the General Counsel of Chugach Electric Association, Inc., an Alaskan electric cooperative (the “Company”), in connection with the transactions contemplated by the above- referenced Bond Purchase Agreement.  This opinion is provided to you at the request of the Company pursuant to Section 4.4 of the Bond Purchase Agreement.  Capitalized terms used and not otherwise defined in this opinion letter have the meanings defined in the Bond Purchase Agreement.  

The law covered by the opinions expressed herein is limited to the laws of the State of Alaska.

This opinion letter is to be interpreted in accordance with the Guidelines for the Preparation of Closing Opinions (including the appended Legal Opinion Principles) issued by the Committee on Legal Opinions of the American Bar Association’s Business Law Section as published in 57 Business Lawyer 875 (February 2002) and the Statement on the Role of Customary Practice in the Preparation and Understanding of Third-Party Legal Opinions as published in 63 Business Lawyer 1277 (August 2008).

A.Financing Agreements and Matters Examined

In connection with this opinion letter, I have examined originals, or copies certified or otherwise identified to our satisfaction, of such documents, records, certificates and statements of government officials, officers, and other representatives of the persons referred to therein, and such other documents as I have deemed relevant or necessary as the basis for the opinions herein expressed, including the following:

A-1Bond Purchase Agreement

A-2 Second Amended and Restated Indenture of Trust dated as of January 20, 2011, between the Company and U.S. Bank National Association, as Trustee (the “Trustee”), as amended by First Supplemental Indenture of Trust dated as of January 20, 2011, between the Company and U.S. Bank National Association, as Trustee (as so amended, the “Indenture”), relating to real property described in Exhibit A attached thereto (the “Mortgaged Property”).

  

  

  

Purchasers of Chugach Electric Association, Inc. First Mortgage Bonds, 2011 Series A

January 21, 2011

Page 4

A-3Bonds in the aggregate amount of $275,000,000 consisting of an aggregate principal amount of $90,000,000 of First Mortgage Bonds, 2011 Series A, due March 15, 2031 and an aggregate principal amount of $185,000,000 of First Mortgage Bonds, 2011 Series A, due March 15, 2041, in each case signed by the Company but not yet authenticated by the Trustee (collectively, the “2011 Series A Bonds”).

A-4File-stamped copy of Uniform Commercial Code financing statement naming the Company as debtor and as a transmitting utility, and the Trustee as secured party (the “Financing Statement”), as filed in the UCC Section of the Department of Natural Resources of the State of Alaska (the “Filing Office”) on January 20, 2011;

A-5File-stamped copies of each of the Second Amended and Restated Indenture of Trust dated as of January 20, 2011, and the First Supplement to the Second Amended and Restated Indenture dated as of January 20, 2011, in each case as recorded in the real property recording offices in each of the Anchorage, Palmer and Kenai Recording Districts on January 20, 2011 (or oral confirmation of such recordings, including recording numbers, from First American Title Insurance Company);

A-6Certificates of an officer of the Company as to certain factual matters on which I have relied in giving this opinion, including that the times-interest-earned ration most recently approved by the Regulatory Commission of Alaska for the Company is not less than 1.10.

A-7Articles of incorporation and bylaws of the Company, certified to by an officer of the Company as being complete and in full force and effect as of the date of this opinion.

A-8Resolutions of the Board of Directors of the Company certified by an officer of the Company as constituting all records of proceedings and actions of the Company relating to the transactions contemplated by the Financing Agreements (as defined below).

A-9A Certificate of Compliance with respect to the Company issued by the Alaska Department of Commerce and Economic Development, dated January 12, 2011.

A-10Each of the agreements identified in Exhibit B to the Second Amended and Restated Indenture of Trust dated as of January 20, 2011 (the “Material Agreements”).

The documents listed in A-1 through A-3 are herein collectively referred to as the “Financing Agreements.”

My opinion expressed in Paragraph B-1 as to the status of the Company under the laws of the State of Alaska is based solely upon the Certificate of Compliance enumerated above.  I have made no additional investigation after the date of that Certificate or in rendering my opinion expressed in B-1.

  

  

  

Purchasers of Chugach Electric Association, Inc. First Mortgage Bonds, 2011 Series A

January 21, 2011

Page 4

In connection with my opinion relating to the Material Agreement, I have not reviewed, and express no opinion on, (i) financial covenants or similar provisions requiring financial calculations or determinations to ascertain compliance, (ii) provisions relating to the occurrence of a “material adverse event” or words of similar import or (iii) parol evidence bearing on interpretation or construction.  Moreover, to the extent that any of the agreements and instruments identified in the Material Agreements are governed by the laws of any jurisdiction other than the State of Alaska, my opinion relating to those agreements and instruments is based solely upon the plain meaning of their language without regard to interpretation or construction that might be indicated by the laws governing those agreements and instruments.

Whenever a statement herein is qualified by the phrase “to my knowledge,” or by any other similar phrases, or where it is noted that nothing has been brought to my attention, it means that the opinion stated is based solely on the my conscious awareness of information.

B.Opinions

Based on the foregoing examinations and assumptions and subject to the qualifications and exclusions stated below, I am of the opinion that:

B-1The Company is an electric cooperative utility validly existing under Alaska law.

B-2The Company has corporate power and authority to enter into, and to perform its obligations under, each of the Financing Agreements, and to own its properties and to carry on its business as, to my knowledge, it is now conducted.

B-3The Company has authorized, by all necessary corporate action on the part of the Company, the execution and delivery of each of the Financing Agreements and the Financing Statement.

B-4The Company has duly executed and delivered each of the Financing Agreements.

B-5The execution and delivery by the Company of, and the performance by the Company of the transactions contemplated by, each of the Financing Agreements do not (a) violate the Company’s Articles of Incorporation or Bylaws, (b) breach, or result in a default under, any existing obligation of the Company under the Material Agreements.

B-6The execution and delivery by the Company of, and the performance of the transactions contemplated by, each of the Financing Agreements (including the issue and sale of the Series 2011A Bonds) are not prohibited by, nor do they violate any applicable statutes or regulations of any governmental agency or body having jurisdiction over the Company or any of its properties, or any order of any agency or body having jurisdiction over the Company of which I have knowledge.

  

  

  

Purchasers of Chugach Electric Association, Inc. First Mortgage Bonds, 2011 Series A

January 21, 2011

Page 4

 

B-7No consent, approval, authorization, order, license, filing, registration or qualification of or with any governmental agency or body having jurisdiction over the Company or any of its properties is required for execution and delivery of the Financing Documents and consummation by the Company of the transactions contemplated by the Bond Purchase Agreement, including the issue and sale of the Series 2011A bonds pursuant to the Indenture, except for the recordation of the Indenture and the filing of the Financing Statements and such consents, approvals, authorizations, licenses, filings, registrations or qualifications as may be required under state securities or Blue Sky laws in connection with the offering and purchase of the Series 2011A Bonds.

B-8To my knowledge, there are no actions or proceedings against the Company pending before any court, government agency or arbitrator, or overtly threatened in writing, that seek to affect the enforceability of any of the Financing Agreements or security interests or liens in any real or personal property granted in any of the Financing Agreements or that, if adversely determined against the Company, would adversely affect the ability of the Company to comply with its obligations under the Bond Purchase Agreement.

This opinion letter is delivered as of its date and without any undertaking to advise you of any changes of law or fact that occur after the date of this opinion letter even though the changes may affect the legal analysis, a legal conclusion or information confirmed in this opinion letter.

This opinion letter is rendered only to you and is solely for your benefit and the benefit of successor holders of the 2011 Series A Bonds in connection with the transaction contemplated by the Financing Agreements.  This opinion letter may not be used or relied on for any other purpose or by any other person without our prior written consent.

Very truly yours,

  

  

  

Form of Opinion of Special Counsel

to the Purchasers

 

[To be provided on a case by case basis]

Exhibit 4.4(b)

(to Bond Purchase Agreement)Unassociated Document

Exhibit 4.21

THIS 2011 SERIES A BOND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH EXEMPTION IS REQUIRED BY LAW.

THE COMPANY (DEFINED BELOW) IS PERSONALLY OBLIGATED AND FULLY LIABLE FOR THE AMOUNT DUE UNDER THIS BOND AND, SUBJECT TO THE PROVISIONS OF THE INDENTURE (DEFINED BELOW), EACH HOLDER (AS DEFINED IN THE INDENTURE) HAS THE RIGHT TO SUE ON THIS BOND AND OBTAIN A PERSONAL JUDGMENT AGAINST THE COMPANY FOR SATISFACTION OF THE AMOUNT UNDER THIS BOND EITHER BEFORE OR AFTER A FORECLOSURE OF THE INDENTURE UNDER ALASKA STATUTES 09.45.170-09.45.220.

CHUGACH ELECTRIC ASSOCIATION, INC.

FIRST MORTGAGE BONDS, 2011 SERIES A DUE MARCH 15, 2031

	
NO. RA-1

	
ISSUANCE DATE: JANUARY 21, 2011

	
$27,800,000

	
PPN: 171265 A*2

FOR VALUE RECEIVED, the undersigned, CHUGACH ELECTRIC ASSOCIATION, INC. (herein called the “Company”), an electric cooperative organized and existing under the laws of the State of Alaska, hereby promises to pay to NEW YORK LIFE INSURANCE COMPANY, or registered assigns, the principal sum of TWENTY-SEVEN MILLION EIGHT HUNDRED THOUSAND DOLLARS (or so much thereof as shall not have been prepaid) on March 15, 2031, with interest computed on the basis of a 360-day year of twelve 30-day months (a) on the unpaid balance hereof at a rate of 4.20% per annum (plus, upon the occurrence and during the continuation of an Interest Rate Adjustment Event (as hereinafter defined), an additional 2% per annum) from the date hereof, payable semiannually on the 15th day of each March and September, commencing on September 15, 2011, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest, any overdue payment of any Make-Whole Amount (as defined in the First Supplemental Indenture referred to below), payable semiannually as aforesaid (or, at the option of the registered Holder hereof, on demand), at the Default Rate (as defined in the First Supplemental Indenture referred to below).

“Interest Rate Adjustment Event” means the occurrence of any of the following:

(a)           the Company defaults in the performance of Section 7.1(a) or (b) or Section 7.2 of the 2011 Series A Bond Purchase Agreement (as defined below); or

(b)           any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in the Indenture or the 2011 Series A Bond Purchase Agreement (as defined below) or in any writing furnished in connection with the transactions contemplated by the First Supplemental Indenture (referred to below) proves to have been false or incorrect in any material respect on the date as of which made and, with respect to representations and warranties made after the date hereof, for which accurate information has not since been provided in writing to the Holder of this Bond.

  

  

  

Subject to Section 11 of the 2011 Series A Bond Purchase Agreement (defined below), payments of principal of, interest on, and any Make-Whole Amount with respect to this Bond are to be made in lawful money of the United States of America in accordance with the terms of the Indenture.

This Bond is one of the 2011 Series A Bonds (herein called the “Bonds”) issued pursuant to the First Supplemental Indenture, dated as of January 20, 2011 (as from time to time amended, the “First Supplemental Indenture”), between the Company and the Trustee named therein which amends and supplements the Second Amended and Restated Indenture of Trust, dated as of January 20, 2011 (as amended and supplemented from time to time, the “Indenture”) and is entitled to the benefits thereof and the 2011 Series A Bond Purchase Agreement dated January 21, 2011 between the Company and the purchasers listed in Schedule A thereto (the “2011 Series A Bond Purchase Agreement”).  Each Holder of this Bond will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 18 of the 2011 Series A Bond Purchase Agreement and (ii) made the representations set forth in Section 6 of the 2011 Series A Bond Purchase Agreement.  Unless otherwise indicated, capitalized terms used in this Bond shall have the respective meanings ascribed to such terms in the First Supplemental Indenture.

This Bond shall be registered in the name of the Holder hereof.  This Bond is transferable, as provided in the Indenture, only upon the registration books of the Company maintained by the Obligation Registrar, which shall be the Trustee, kept at its principal office, upon presentation at said office of this Bond with the written request of the registered owner hereof or his attorney duly authorized in writing, and a written instrument of transfer satisfactory to the Obligation Registrar duly executed by the registered owner or his duly authorized attorney.

The Bonds shall be issued as fully registered Bonds without coupons and in minimum denominations of $1.00 and any integral multiple of $1.00 in excess thereof. The Trustee may impose a charge sufficient to reimburse the Company or the Trustee for any tax, fee or other governmental charge required to be paid with respect to such exchange or any transfer of a Bond.  The cost, if any, of preparing each new Bond issued upon such exchange or transfer, and any other expenses of the Company or the Trustee incurred in connection therewith, shall be paid by in accordance with Section 3.7 of the Indenture.

The Company will make the required prepayments of principal on this Bond on the dates and in the amount specified in the First Supplemental Indenture.  This Bond is also subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in First Supplemental Indenture, but not otherwise.

If an Event of Default under the Indenture occurs and is continuing, the principal of this Bond may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Indenture.  In the event that the principal of this Bond shall have been declared or otherwise become due and payable as described in the preceding sentence, then, in addition to paying the Holder hereof the entire unpaid principal amount of this Bond and all accrued and unpaid interest hereon (including, but not limited to, interest accrued hereon at the Default Rate), the Company shall pay to the Holder hereof (to the full extent permitted by applicable law) an amount equal to the Make-Whole Amount determined in respect of such principal amount.

  

- 2 -

  

The Holder of this Bond shall have no right to enforce the provisions of the Indenture, or to institute action to enforce the covenants therein, or to take any action with respect to any default under the Indenture, or to institute, appear in or defend any suit or other proceeding with respect thereto, except as provided in the Indenture and the 2011 Series A Bond Purchase Agreement.

All acts and proceedings required by law and by the Articles of Incorporation and Bylaws of the Company necessary to make the 2011 Series A Bonds issued under the Indenture, when executed by the Company, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal obligations of the Company, in accordance with its terms, have been done and taken.

It is the intention of the Holder to comply with the usury laws of the State of Alaska and of the United States of America.  This Bond is hereby expressly limited such that in no contingency or event whatsoever, whether by reason of acceleration, prepayment, or otherwise, shall the amount of interest contracted for, charged or received by the Holder for the use, forbearance, or detention of the principal indebtedness or interest hereof, which remains unpaid from time to time, exceed the highest maximum rate permitted by applicable law.  If fulfillment of any provisions hereof, at the time of performance of such provisions shall be due, shall involve transcending the valid limits prescribed by applicable law, then, ipso facto, the obligation to be fulfilled shall be reduced to the maximum rate allowed by applicable law.  If any Holder receives as interest an amount which will exceed the maximum rate allowed by applicable law, such amount shall be applied to the reduction of the principal amount owing hereunder or on account of any other principal indebtedness owed to Holder and not to the payment of interest, or if such excessive interest exceeds the unpaid balance of principal hereof and such other indebtedness, such excess shall be refunded.  To the extent not prohibited by applicable law, determination of the maximum rate allowed by applicable law shall at all times be made by amortizing, prorating, allocating and spreading in equal parts during the full term of this Bond, all interest at any time contracted for, charged or received from the Company in connection with this Bond, so that the actual rate of interest on account of such indebtedness is uniform throughout the term of this Bond.  The terms of this paragraph shall control and supersede any other provisions of this Bond.

This Bond shall be construed in accordance with and governed by the law of the State of Alaska.

No covenant or agreement contained in this Bond, the Indenture or the First Supplemental Indenture shall be deemed to be a covenant or agreement of any official, officer, agent or employee of the Company in his individual capacity, and no officer of the Company executing this Bond shall be liable personally on this Bond or be subject to any personal liability or accountability by reason of the issuance of this Bond.

This Bond shall not be entitled to any benefit under the Indenture or be valid until this Bond shall have been authenticated by the execution by the Trustee, or its successor as Trustee, of the Certificate of Authentication inscribed hereon.

  

- 3 -

  

IN WITNESS WHEREOF, the Company has caused this Bond to be executed by a duly authorized officer of the Company.

	  	
CHUGACH ELECTRIC ASSOCIATION, INC.

	  	  	  
	  	
By:

	
/s/ Michael R. Cunningham

	  
	  	
Name:

	  
	  	
Title:

	
C.F.O.

  

- 4 -

  

 

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

	  	  	
U.S. BANK NATIONAL ASSOCIATION,

	  	  	
as Trustee

	  	  	  	  
	  	  	
By:

	
/s/ Thomas Zrust

	  
	  	  	  	
Authorized Signatory

	  	  	  	  
	
Date of Authentication:

	
January 21, 2011

	  	  

  

- 5 -

  

THIS 2011 SERIES A BOND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH EXEMPTION IS REQUIRED BY LAW.

THE COMPANY (DEFINED BELOW) IS PERSONALLY OBLIGATED AND FULLY LIABLE FOR THE AMOUNT DUE UNDER THIS BOND AND, SUBJECT TO THE PROVISIONS OF THE INDENTURE (DEFINED BELOW), EACH HOLDER (AS DEFINED IN THE INDENTURE) HAS THE RIGHT TO SUE ON THIS BOND AND OBTAIN A PERSONAL JUDGMENT AGAINST THE COMPANY FOR SATISFACTION OF THE AMOUNT UNDER THIS BOND EITHER BEFORE OR AFTER A FORECLOSURE OF THE INDENTURE UNDER ALASKA STATUTES 09.45.170-09.45.220.

CHUGACH ELECTRIC ASSOCIATION, INC.

FIRST MORTGAGE BONDS, 2011 SERIES A DUE MARCH 15, 2031

 

	
NO. RA-2

	
ISSUANCE DATE: JANUARY 21, 2011

	
$21,000,000

	
PPN: 171265 A*2

FOR VALUE RECEIVED, the undersigned, CHUGACH ELECTRIC ASSOCIATION, INC. (herein called the “Company”), an electric cooperative organized and existing under the laws of the State of Alaska, hereby promises to pay to NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION, or registered assigns, the principal sum of TWENTY-ONE MILLION DOLLARS (or so much thereof as shall not have been prepaid) on March 15, 2031, with interest computed on the basis of a 360-day year of twelve 30-day months (a) on the unpaid balance hereof at a rate of 4.20% per annum (plus, upon the occurrence and during the continuation of an Interest Rate Adjustment Event (as hereinafter defined), an additional 2% per annum) from the date hereof, payable semiannually on the 15th day of each March and September, commencing on September 15, 2011, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest, any overdue payment of any Make-Whole Amount (as defined in the First Supplemental Indenture referred to below), payable semiannually as aforesaid (or, at the option of the registered Holder hereof, on demand), at the Default Rate (as defined in the First Supplemental Indenture referred to below).

“Interest Rate Adjustment Event” means the occurrence of any of the following:

(a)           the Company defaults in the performance of Section 7.1(a) or (b) or Section 7.2 of the 2011 Series A Bond Purchase Agreement (as defined below); or

(b)           any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in the Indenture or the 2011 Series A Bond Purchase Agreement (as defined below) or in any writing furnished in connection with the transactions contemplated by the First Supplemental Indenture (referred to below) proves to have been false or incorrect in any material respect on the date as of which made and, with respect to representations and warranties made after the date hereof, for which accurate information has not since been provided in writing to the Holder of this Bond.

  

  

  

Subject to Section 11 of the 2011 Series A Bond Purchase Agreement (defined below), payments of principal of, interest on, and any Make-Whole Amount with respect to this Bond are to be made in lawful money of the United States of America in accordance with the terms of the Indenture.

This Bond is one of the 2011 Series A Bonds (herein called the “Bonds”) issued pursuant to the First Supplemental Indenture, dated as of January 20, 2011 (as from time to time amended, the “First Supplemental Indenture”), between the Company and the Trustee named therein which amends and supplements the Second Amended and Restated Indenture of Trust, dated as of January 20, 2011 (as amended and supplemented from time to time, the “Indenture”) and is entitled to the benefits thereof and the 2011 Series A Bond Purchase Agreement dated January 21, 2011 between the Company and the purchasers listed in Schedule A thereto (the “2011 Series A Bond Purchase Agreement”).  Each Holder of this Bond will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 18 of the 2011 Series A Bond Purchase Agreement and (ii) made the representations set forth in Section 6 of the 2011 Series A Bond Purchase Agreement.  Unless otherwise indicated, capitalized terms used in this Bond shall have the respective meanings ascribed to such terms in the First Supplemental Indenture.

This Bond shall be registered in the name of the Holder hereof.  This Bond is transferable, as provided in the Indenture, only upon the registration books of the Company maintained by the Obligation Registrar, which shall be the Trustee, kept at its principal office, upon presentation at said office of this Bond with the written request of the registered owner hereof or his attorney duly authorized in writing, and a written instrument of transfer satisfactory to the Obligation Registrar duly executed by the registered owner or his duly authorized attorney.

The Bonds shall be issued as fully registered Bonds without coupons and in minimum denominations of $1.00 and any integral multiple of $1.00 in excess thereof. The Trustee may impose a charge sufficient to reimburse the Company or the Trustee for any tax, fee or other governmental charge required to be paid with respect to such exchange or any transfer of a Bond.  The cost, if any, of preparing each new Bond issued upon such exchange or transfer, and any other expenses of the Company or the Trustee incurred in connection therewith, shall be paid by in accordance with Section 3.7 of the Indenture.

The Company will make the required prepayments of principal on this Bond on the dates and in the amount specified in the First Supplemental Indenture.  This Bond is also subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in First Supplemental Indenture, but not otherwise.

If an Event of Default under the Indenture occurs and is continuing, the principal of this Bond may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Indenture.  In the event that the principal of this Bond shall have been declared or otherwise become due and payable as described in the preceding sentence, then, in addition to paying the Holder hereof the entire unpaid principal amount of this Bond and all accrued and unpaid interest hereon (including, but not limited to, interest accrued hereon at the Default Rate), the Company shall pay to the Holder hereof (to the full extent permitted by applicable law) an amount equal to the Make-Whole Amount determined in respect of such principal amount.

  

- 2 -

  

The Holder of this Bond shall have no right to enforce the provisions of the Indenture, or to institute action to enforce the covenants therein, or to take any action with respect to any default under the Indenture, or to institute, appear in or defend any suit or other proceeding with respect thereto, except as provided in the Indenture and the 2011 Series A Bond Purchase Agreement.

All acts and proceedings required by law and by the Articles of Incorporation and Bylaws of the Company necessary to make the 2011 Series A Bonds issued under the Indenture, when executed by the Company, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal obligations of the Company, in accordance with its terms, have been done and taken.

It is the intention of the Holder to comply with the usury laws of the State of Alaska and of the United States of America.  This Bond is hereby expressly limited such that in no contingency or event whatsoever, whether by reason of acceleration, prepayment, or otherwise, shall the amount of interest contracted for, charged or received by the Holder for the use, forbearance, or detention of the principal indebtedness or interest hereof, which remains unpaid from time to time, exceed the highest maximum rate permitted by applicable law.  If fulfillment of any provisions hereof, at the time of performance of such provisions shall be due, shall involve transcending the valid limits prescribed by applicable law, then, ipso facto, the obligation to be fulfilled shall be reduced to the maximum rate allowed by applicable law.  If any Holder receives as interest an amount which will exceed the maximum rate allowed by applicable law, such amount shall be applied to the reduction of the principal amount owing hereunder or on account of any other principal indebtedness owed to Holder and not to the payment of interest, or if such excessive interest exceeds the unpaid balance of principal hereof and such other indebtedness, such excess shall be refunded.  To the extent not prohibited by applicable law, determination of the maximum rate allowed by applicable law shall at all times be made by amortizing, prorating, allocating and spreading in equal parts during the full term of this Bond, all interest at any time contracted for, charged or received from the Company in connection with this Bond, so that the actual rate of interest on account of such indebtedness is uniform throughout the term of this Bond.  The terms of this paragraph shall control and supersede any other provisions of this Bond.

This Bond shall be construed in accordance with and governed by the law of the State of Alaska.

No covenant or agreement contained in this Bond, the Indenture or the First Supplemental Indenture shall be deemed to be a covenant or agreement of any official, officer, agent or employee of the Company in his individual capacity, and no officer of the Company executing this Bond shall be liable personally on this Bond or be subject to any personal liability or accountability by reason of the issuance of this Bond.

This Bond shall not be entitled to any benefit under the Indenture or be valid until this Bond shall have been authenticated by the execution by the Trustee, or its successor as Trustee, of the Certificate of Authentication inscribed hereon.

  

- 3 -

  

IN WITNESS WHEREOF, the Company has caused this Bond to be executed by a duly authorized officer of the Company.

	  	
CHUGACH ELECTRIC ASSOCIATION, INC.

	  	  	  
	  	
By:

	
/s/ Michael R. Cunningham

	  
	  	
Name:

	  
	  	
Title:

	
C.F.O.

  

- 4 -

  

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

 

	  	  	
U.S. BANK NATIONAL ASSOCIATION,

	  	  	
as Trustee

	  	  	  	  
	  	  	
By:

	
/s/ Thomas Zrust

	  
	  	  	  	
Authorized Signatory

	  	  	  	  
	
Date of Authentication:

	
January 21, 2011

	  	  

  

- 5 -

  

THIS 2011 SERIES A BOND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH EXEMPTION IS REQUIRED BY LAW.

THE COMPANY (DEFINED BELOW) IS PERSONALLY OBLIGATED AND FULLY LIABLE FOR THE AMOUNT DUE UNDER THIS BOND AND, SUBJECT TO THE PROVISIONS OF THE INDENTURE (DEFINED BELOW), EACH HOLDER (AS DEFINED IN THE INDENTURE) HAS THE RIGHT TO SUE ON THIS BOND AND OBTAIN A PERSONAL JUDGMENT AGAINST THE COMPANY FOR SATISFACTION OF THE AMOUNT UNDER THIS BOND EITHER BEFORE OR AFTER A FORECLOSURE OF THE INDENTURE UNDER ALASKA STATUTES 09.45.170-09.45.220.

CHUGACH ELECTRIC ASSOCIATION, INC.

FIRST MORTGAGE BONDS, 2011 SERIES A DUE MARCH 15, 2031

 

	
NO. RA-3

	
ISSUANCE DATE: JANUARY 21, 2011

	
$5,600,000

	
PPN: 171265 A*2

FOR VALUE RECEIVED, the undersigned, CHUGACH ELECTRIC ASSOCIATION, INC. (herein called the “Company”), an electric cooperative organized and existing under the laws of the State of Alaska, hereby promises to pay to NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION INSTITUTIONALLY OWNED LIFE INSURANCE SEPARATE ACCOUNT (BOLI 30C), or registered assigns, the principal sum of FIVE MILLION SIX HUNDRED THOUSAND DOLLARS (or so much thereof as shall not have been prepaid) on March 15, 2031, with interest computed on the basis of a 360-day year of twelve 30-day months (a) on the unpaid balance hereof at a rate of 4.20% per annum (plus, upon the occurrence and during the continuation of an Interest Rate Adjustment Event (as hereinafter defined), an additional 2% per annum) from the date hereof, payable semiannually on the 15th day of each March and September, commencing on September 15, 2011, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest, any overdue payment of any Make-Whole Amount (as defined in the First Supplemental Indenture referred to below), payable semiannually as aforesaid (or, at the option of the registered Holder hereof, on demand), at the Default Rate (as defined in the First Supplemental Indenture referred to below).

“Interest Rate Adjustment Event” means the occurrence of any of the following:

(a)           the Company defaults in the performance of Section 7.1(a) or (b) or Section 7.2 of the 2011 Series A Bond Purchase Agreement (as defined below); or

(b)           any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in the Indenture or the 2011 Series A Bond Purchase Agreement (as defined below) or in any writing furnished in connection with the transactions contemplated by the First Supplemental Indenture (referred to below) proves to have been false or incorrect in any material respect on the date as of which made and, with respect to representations and warranties made after the date hereof, for which accurate information has not since been provided in writing to the Holder of this Bond.

  

  

  

Subject to Section 11 of the 2011 Series A Bond Purchase Agreement (defined below), payments of principal of, interest on, and any Make-Whole Amount with respect to this Bond are to be made in lawful money of the United States of America in accordance with the terms of the Indenture.

This Bond is one of the 2011 Series A Bonds (herein called the “Bonds”) issued pursuant to the First Supplemental Indenture, dated as of January 20, 2011 (as from time to time amended, the “First Supplemental Indenture”), between the Company and the Trustee named therein which amends and supplements the Second Amended and Restated Indenture of Trust, dated as of January 20, 2011 (as amended and supplemented from time to time, the “Indenture”) and is entitled to the benefits thereof and the 2011 Series A Bond Purchase Agreement dated January 21, 2011 between the Company and the purchasers listed in Schedule A thereto (the “2011 Series A Bond Purchase Agreement”).  Each Holder of this Bond will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 18 of the 2011 Series A Bond Purchase Agreement and (ii) made the representations set forth in Section 6 of the 2011 Series A Bond Purchase Agreement.  Unless otherwise indicated, capitalized terms used in this Bond shall have the respective meanings ascribed to such terms in the First Supplemental Indenture.

This Bond shall be registered in the name of the Holder hereof.  This Bond is transferable, as provided in the Indenture, only upon the registration books of the Company maintained by the Obligation Registrar, which shall be the Trustee, kept at its principal office, upon presentation at said office of this Bond with the written request of the registered owner hereof or his attorney duly authorized in writing, and a written instrument of transfer satisfactory to the Obligation Registrar duly executed by the registered owner or his duly authorized attorney.

The Bonds shall be issued as fully registered Bonds without coupons and in minimum denominations of $1.00 and any integral multiple of $1.00 in excess thereof. The Trustee may impose a charge sufficient to reimburse the Company or the Trustee for any tax, fee or other governmental charge required to be paid with respect to such exchange or any transfer of a Bond.  The cost, if any, of preparing each new Bond issued upon such exchange or transfer, and any other expenses of the Company or the Trustee incurred in connection therewith, shall be paid by in accordance with Section 3.7 of the Indenture.

The Company will make the required prepayments of principal on this Bond on the dates and in the amount specified in the First Supplemental Indenture.  This Bond is also subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in First Supplemental Indenture, but not otherwise.

If an Event of Default under the Indenture occurs and is continuing, the principal of this Bond may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Indenture.  In the event that the principal of this Bond shall have been declared or otherwise become due and payable as described in the preceding sentence, then, in addition to paying the Holder hereof the entire unpaid principal amount of this Bond and all accrued and unpaid interest hereon (including, but not limited to, interest accrued hereon at the Default Rate), the Company shall pay to the Holder hereof (to the full extent permitted by applicable law) an amount equal to the Make-Whole Amount determined in respect of such principal amount.

  

- 2 -

  

The Holder of this Bond shall have no right to enforce the provisions of the Indenture, or to institute action to enforce the covenants therein, or to take any action with respect to any default under the Indenture, or to institute, appear in or defend any suit or other proceeding with respect thereto, except as provided in the Indenture and the 2011 Series A Bond Purchase Agreement.

All acts and proceedings required by law and by the Articles of Incorporation and Bylaws of the Company necessary to make the 2011 Series A Bonds issued under the Indenture, when executed by the Company, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal obligations of the Company, in accordance with its terms, have been done and taken.

It is the intention of the Holder to comply with the usury laws of the State of Alaska and of the United States of America.  This Bond is hereby expressly limited such that in no contingency or event whatsoever, whether by reason of acceleration, prepayment, or otherwise, shall the amount of interest contracted for, charged or received by the Holder for the use, forbearance, or detention of the principal indebtedness or interest hereof, which remains unpaid from time to time, exceed the highest maximum rate permitted by applicable law.  If fulfillment of any provisions hereof, at the time of performance of such provisions shall be due, shall involve transcending the valid limits prescribed by applicable law, then, ipso facto, the obligation to be fulfilled shall be reduced to the maximum rate allowed by applicable law.  If any Holder receives as interest an amount which will exceed the maximum rate allowed by applicable law, such amount shall be applied to the reduction of the principal amount owing hereunder or on account of any other principal indebtedness owed to Holder and not to the payment of interest, or if such excessive interest exceeds the unpaid balance of principal hereof and such other indebtedness, such excess shall be refunded.  To the extent not prohibited by applicable law, determination of the maximum rate allowed by applicable law shall at all times be made by amortizing, prorating, allocating and spreading in equal parts during the full term of this Bond, all interest at any time contracted for, charged or received from the Company in connection with this Bond, so that the actual rate of interest on account of such indebtedness is uniform throughout the term of this Bond.  The terms of this paragraph shall control and supersede any other provisions of this Bond.

This Bond shall be construed in accordance with and governed by the law of the State of Alaska.

No covenant or agreement contained in this Bond, the Indenture or the First Supplemental Indenture shall be deemed to be a covenant or agreement of any official, officer, agent or employee of the Company in his individual capacity, and no officer of the Company executing this Bond shall be liable personally on this Bond or be subject to any personal liability or accountability by reason of the issuance of this Bond.

This Bond shall not be entitled to any benefit under the Indenture or be valid until this Bond shall have been authenticated by the execution by the Trustee, or its successor as Trustee, of the Certificate of Authentication inscribed hereon.

  

- 3 -

  

IN WITNESS WHEREOF, the Company has caused this Bond to be executed by a duly authorized officer of the Company.

	  	
CHUGACH ELECTRIC ASSOCIATION, INC.

	  	  	  
	  	
By:

	
/s/ Michael R. Cunningham

	  
	  	
Name:

	  
	  	
Title:

	
C.F.O.

  

- 4 -

  

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

 

	  	  	
U.S. BANK NATIONAL ASSOCIATION,

	  	  	
as Trustee

	  	  	  	  
	  	  	
By:

	
/s/ Thomas Zrust

	  
	  	  	  	
Authorized Signatory

	  	  	  	  
	
Date of Authentication:

	
January 21, 2011

	  	  

  

- 5 -

  

THIS 2011 SERIES A BOND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH EXEMPTION IS REQUIRED BY LAW.

THE COMPANY (DEFINED BELOW) IS PERSONALLY OBLIGATED AND FULLY LIABLE FOR THE AMOUNT DUE UNDER THIS BOND AND, SUBJECT TO THE PROVISIONS OF THE INDENTURE (DEFINED BELOW), EACH HOLDER (AS DEFINED IN THE INDENTURE) HAS THE RIGHT TO SUE ON THIS BOND AND OBTAIN A PERSONAL JUDGMENT AGAINST THE COMPANY FOR SATISFACTION OF THE AMOUNT UNDER THIS BOND EITHER BEFORE OR AFTER A FORECLOSURE OF THE INDENTURE UNDER ALASKA STATUTES 09.45.170-09.45.220.

CHUGACH ELECTRIC ASSOCIATION, INC.

FIRST MORTGAGE BONDS, 2011 SERIES A DUE MARCH 15, 2031

	
NO. RA-4

	
ISSUANCE DATE: JANUARY 21, 2011

	
$600,000

	
PPN: 171265 A*2

FOR VALUE RECEIVED, the undersigned, CHUGACH ELECTRIC ASSOCIATION, INC. (herein called the “Company”), an electric cooperative organized and existing under the laws of the State of Alaska, hereby promises to pay to NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION INSTITUTIONALLY OWNED LIFE INSURANCE SEPARATE ACCOUNT (BOLI 30E), or registered assigns, the principal sum of SIX HUNDRED THOUSAND DOLLARS (or so much thereof as shall not have been prepaid) on March 15, 2031, with interest computed on the basis of a 360-day year of twelve 30-day months (a) on the unpaid balance hereof at a rate of 4.20% per annum (plus, upon the occurrence and during the continuation of an Interest Rate Adjustment Event (as hereinafter defined), an additional 2% per annum) from the date hereof, payable semiannually on the 15th day of each March and September, commencing on September 15, 2011, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest, any overdue payment of any Make-Whole Amount (as defined in the First Supplemental Indenture referred to below), payable semiannually as aforesaid (or, at the option of the registered Holder hereof, on demand), at the Default Rate (as defined in the First Supplemental Indenture referred to below).

“Interest Rate Adjustment Event” means the occurrence of any of the following:

(a)           the Company defaults in the performance of Section 7.1(a) or (b) or Section 7.2 of the 2011 Series A Bond Purchase Agreement (as defined below); or

(b)           any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in the Indenture or the 2011 Series A Bond Purchase Agreement (as defined below) or in any writing furnished in connection with the transactions contemplated by the First Supplemental Indenture (referred to below) proves to have been false or incorrect in any material respect on the date as of which made and, with respect to representations and warranties made after the date hereof, for which accurate information has not since been provided in writing to the Holder of this Bond.

  

  

  

Subject to Section 11 of the 2011 Series A Bond Purchase Agreement (defined below), payments of principal of, interest on, and any Make-Whole Amount with respect to this Bond are to be made in lawful money of the United States of America in accordance with the terms of the Indenture.

This Bond is one of the 2011 Series A Bonds (herein called the “Bonds”) issued pursuant to the First Supplemental Indenture, dated as of January 20, 2011 (as from time to time amended, the “First Supplemental Indenture”), between the Company and the Trustee named therein which amends and supplements the Second Amended and Restated Indenture of Trust, dated as of January 20, 2011 (as amended and supplemented from time to time, the “Indenture”) and is entitled to the benefits thereof and the 2011 Series A Bond Purchase Agreement dated January 21, 2011 between the Company and the purchasers listed in Schedule A thereto (the “2011 Series A Bond Purchase Agreement”).  Each Holder of this Bond will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 18 of the 2011 Series A Bond Purchase Agreement and (ii) made the representations set forth in Section 6 of the 2011 Series A Bond Purchase Agreement.  Unless otherwise indicated, capitalized terms used in this Bond shall have the respective meanings ascribed to such terms in the First Supplemental Indenture.

This Bond shall be registered in the name of the Holder hereof.  This Bond is transferable, as provided in the Indenture, only upon the registration books of the Company maintained by the Obligation Registrar, which shall be the Trustee, kept at its principal office, upon presentation at said office of this Bond with the written request of the registered owner hereof or his attorney duly authorized in writing, and a written instrument of transfer satisfactory to the Obligation Registrar duly executed by the registered owner or his duly authorized attorney.

The Bonds shall be issued as fully registered Bonds without coupons and in minimum denominations of $1.00 and any integral multiple of $1.00 in excess thereof. The Trustee may impose a charge sufficient to reimburse the Company or the Trustee for any tax, fee or other governmental charge required to be paid with respect to such exchange or any transfer of a Bond.  The cost, if any, of preparing each new Bond issued upon such exchange or transfer, and any other expenses of the Company or the Trustee incurred in connection therewith, shall be paid by in accordance with Section 3.7 of the Indenture.

The Company will make the required prepayments of principal on this Bond on the dates and in the amount specified in the First Supplemental Indenture.  This Bond is also subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in First Supplemental Indenture, but not otherwise.

If an Event of Default under the Indenture occurs and is continuing, the principal of this Bond may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Indenture.  In the event that the principal of this Bond shall have been declared or otherwise become due and payable as described in the preceding sentence, then, in addition to paying the Holder hereof the entire unpaid principal amount of this Bond and all accrued and unpaid interest hereon (including, but not limited to, interest accrued hereon at the Default Rate), the Company shall pay to the Holder hereof (to the full extent permitted by applicable law) an amount equal to the Make-Whole Amount determined in respect of such principal amount.

  

- 2 -

  

The Holder of this Bond shall have no right to enforce the provisions of the Indenture, or to institute action to enforce the covenants therein, or to take any action with respect to any default under the Indenture, or to institute, appear in or defend any suit or other proceeding with respect thereto, except as provided in the Indenture and the 2011 Series A Bond Purchase Agreement.

All acts and proceedings required by law and by the Articles of Incorporation and Bylaws of the Company necessary to make the 2011 Series A Bonds issued under the Indenture, when executed by the Company, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal obligations of the Company, in accordance with its terms, have been done and taken.

It is the intention of the Holder to comply with the usury laws of the State of Alaska and of the United States of America.  This Bond is hereby expressly limited such that in no contingency or event whatsoever, whether by reason of acceleration, prepayment, or otherwise, shall the amount of interest contracted for, charged or received by the Holder for the use, forbearance, or detention of the principal indebtedness or interest hereof, which remains unpaid from time to time, exceed the highest maximum rate permitted by applicable law.  If fulfillment of any provisions hereof, at the time of performance of such provisions shall be due, shall involve transcending the valid limits prescribed by applicable law, then, ipso facto, the obligation to be fulfilled shall be reduced to the maximum rate allowed by applicable law.  If any Holder receives as interest an amount which will exceed the maximum rate allowed by applicable law, such amount shall be applied to the reduction of the principal amount owing hereunder or on account of any other principal indebtedness owed to Holder and not to the payment of interest, or if such excessive interest exceeds the unpaid balance of principal hereof and such other indebtedness, such excess shall be refunded.  To the extent not prohibited by applicable law, determination of the maximum rate allowed by applicable law shall at all times be made by amortizing, prorating, allocating and spreading in equal parts during the full term of this Bond, all interest at any time contracted for, charged or received from the Company in connection with this Bond, so that the actual rate of interest on account of such indebtedness is uniform throughout the term of this Bond.  The terms of this paragraph shall control and supersede any other provisions of this Bond.

This Bond shall be construed in accordance with and governed by the law of the State of Alaska.

No covenant or agreement contained in this Bond, the Indenture or the First Supplemental Indenture shall be deemed to be a covenant or agreement of any official, officer, agent or employee of the Company in his individual capacity, and no officer of the Company executing this Bond shall be liable personally on this Bond or be subject to any personal liability or accountability by reason of the issuance of this Bond.

This Bond shall not be entitled to any benefit under the Indenture or be valid until this Bond shall have been authenticated by the execution by the Trustee, or its successor as Trustee, of the Certificate of Authentication inscribed hereon.

  

- 3 -

  

IN WITNESS WHEREOF, the Company has caused this Bond to be executed by a duly authorized officer of the Company.

	  	
CHUGACH ELECTRIC ASSOCIATION, INC.

	  	  	  
	  	
By:

	
/s/ Michael R. Cunningham

	  
	  	
Name:

	  
	  	
Title:

	
C.F.O.

  

- 4 -

  

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

 

	  	  	
U.S. BANK NATIONAL ASSOCIATION,

	  	  	
as Trustee

	  	  	  	  
	  	  	
By:

	
/s/ Thomas Zrust

	  
	  	  	  	
Authorized Signatory

	  	  	  	  
	
Date of Authentication:

	
January 21, 2011

	  	  

  

- 5 -

  

THIS 2011 SERIES A BOND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH EXEMPTION IS REQUIRED BY LAW.

THE COMPANY (DEFINED BELOW) IS PERSONALLY OBLIGATED AND FULLY LIABLE FOR THE AMOUNT DUE UNDER THIS BOND AND, SUBJECT TO THE PROVISIONS OF THE INDENTURE (DEFINED BELOW), EACH HOLDER (AS DEFINED IN THE INDENTURE) HAS THE RIGHT TO SUE ON THIS BOND AND OBTAIN A PERSONAL JUDGMENT AGAINST THE COMPANY FOR SATISFACTION OF THE AMOUNT UNDER THIS BOND EITHER BEFORE OR AFTER A FORECLOSURE OF THE INDENTURE UNDER ALASKA STATUTES 09.45.170-09.45.220.

CHUGACH ELECTRIC ASSOCIATION, INC.

FIRST MORTGAGE BONDS, 2011 SERIES A DUE MARCH 15, 2031

	
NO. RA-5

	
ISSUANCE DATE: JANUARY 21, 2011

	
$6,000,000

	
PPN: 171265 A*2

FOR VALUE RECEIVED, the undersigned, CHUGACH ELECTRIC ASSOCIATION, INC. (herein called the “Company”), an electric cooperative organized and existing under the laws of the State of Alaska, hereby promises to pay to ALLSTATE LIFE INSURANCE COMPANY, or registered assigns, the principal sum of SIX MILLION DOLLARS (or so much thereof as shall not have been prepaid) on March 15, 2031, with interest computed on the basis of a 360-day year of twelve 30-day months (a) on the unpaid balance hereof at a rate of 4.20% per annum (plus, upon the occurrence and during the continuation of an Interest Rate Adjustment Event (as hereinafter defined), an additional 2% per annum) from the date hereof, payable semiannually on the 15th day of each March and September, commencing on September 15, 2011, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest, any overdue payment of any Make-Whole Amount (as defined in the First Supplemental Indenture referred to below), payable semiannually as aforesaid (or, at the option of the registered Holder hereof, on demand), at the Default Rate (as defined in the First Supplemental Indenture referred to below).

“Interest Rate Adjustment Event” means the occurrence of any of the following:

(a)           the Company defaults in the performance of Section 7.1(a) or (b) or Section 7.2 of the 2011 Series A Bond Purchase Agreement (as defined below); or

(b)           any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in the Indenture or the 2011 Series A Bond Purchase Agreement (as defined below) or in any writing furnished in connection with the transactions contemplated by the First Supplemental Indenture (referred to below) proves to have been false or incorrect in any material respect on the date as of which made and, with respect to representations and warranties made after the date hereof, for which accurate information has not since been provided in writing to the Holder of this Bond.

  

  

  

Subject to Section 11 of the 2011 Series A Bond Purchase Agreement (defined below), payments of principal of, interest on, and any Make-Whole Amount with respect to this Bond are to be made in lawful money of the United States of America in accordance with the terms of the Indenture.

This Bond is one of the 2011 Series A Bonds (herein called the “Bonds”) issued pursuant to the First Supplemental Indenture, dated as of January 20, 2011 (as from time to time amended, the “First Supplemental Indenture”), between the Company and the Trustee named therein which amends and supplements the Second Amended and Restated Indenture of Trust, dated as of January 20, 2011 (as amended and supplemented from time to time, the “Indenture”) and is entitled to the benefits thereof and the 2011 Series A Bond Purchase Agreement dated January 21, 2011 between the Company and the purchasers listed in Schedule A thereto (the “2011 Series A Bond Purchase Agreement”).  Each Holder of this Bond will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 18 of the 2011 Series A Bond Purchase Agreement and (ii) made the representations set forth in Section 6 of the 2011 Series A Bond Purchase Agreement.  Unless otherwise indicated, capitalized terms used in this Bond shall have the respective meanings ascribed to such terms in the First Supplemental Indenture.

This Bond shall be registered in the name of the Holder hereof.  This Bond is transferable, as provided in the Indenture, only upon the registration books of the Company maintained by the Obligation Registrar, which shall be the Trustee, kept at its principal office, upon presentation at said office of this Bond with the written request of the registered owner hereof or his attorney duly authorized in writing, and a written instrument of transfer satisfactory to the Obligation Registrar duly executed by the registered owner or his duly authorized attorney.

The Bonds shall be issued as fully registered Bonds without coupons and in minimum denominations of $1.00 and any integral multiple of $1.00 in excess thereof. The Trustee may impose a charge sufficient to reimburse the Company or the Trustee for any tax, fee or other governmental charge required to be paid with respect to such exchange or any transfer of a Bond.  The cost, if any, of preparing each new Bond issued upon such exchange or transfer, and any other expenses of the Company or the Trustee incurred in connection therewith, shall be paid by in accordance with Section 3.7 of the Indenture.

The Company will make the required prepayments of principal on this Bond on the dates and in the amount specified in the First Supplemental Indenture.  This Bond is also subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in First Supplemental Indenture, but not otherwise.

If an Event of Default under the Indenture occurs and is continuing, the principal of this Bond may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Indenture.  In the event that the principal of this Bond shall have been declared or otherwise become due and payable as described in the preceding sentence, then, in addition to paying the Holder hereof the entire unpaid principal amount of this Bond and all accrued and unpaid interest hereon (including, but not limited to, interest accrued hereon at the Default Rate), the Company shall pay to the Holder hereof (to the full extent permitted by applicable law) an amount equal to the Make-Whole Amount determined in respect of such principal amount.

  

- 2 -

  

The Holder of this Bond shall have no right to enforce the provisions of the Indenture, or to institute action to enforce the covenants therein, or to take any action with respect to any default under the Indenture, or to institute, appear in or defend any suit or other proceeding with respect thereto, except as provided in the Indenture and the 2011 Series A Bond Purchase Agreement.

All acts and proceedings required by law and by the Articles of Incorporation and Bylaws of the Company necessary to make the 2011 Series A Bonds issued under the Indenture, when executed by the Company, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal obligations of the Company, in accordance with its terms, have been done and taken.

It is the intention of the Holder to comply with the usury laws of the State of Alaska and of the United States of America.  This Bond is hereby expressly limited such that in no contingency or event whatsoever, whether by reason of acceleration, prepayment, or otherwise, shall the amount of interest contracted for, charged or received by the Holder for the use, forbearance, or detention of the principal indebtedness or interest hereof, which remains unpaid from time to time, exceed the highest maximum rate permitted by applicable law.  If fulfillment of any provisions hereof, at the time of performance of such provisions shall be due, shall involve transcending the valid limits prescribed by applicable law, then, ipso facto, the obligation to be fulfilled shall be reduced to the maximum rate allowed by applicable law.  If any Holder receives as interest an amount which will exceed the maximum rate allowed by applicable law, such amount shall be applied to the reduction of the principal amount owing hereunder or on account of any other principal indebtedness owed to Holder and not to the payment of interest, or if such excessive interest exceeds the unpaid balance of principal hereof and such other indebtedness, such excess shall be refunded.  To the extent not prohibited by applicable law, determination of the maximum rate allowed by applicable law shall at all times be made by amortizing, prorating, allocating and spreading in equal parts during the full term of this Bond, all interest at any time contracted for, charged or received from the Company in connection with this Bond, so that the actual rate of interest on account of such indebtedness is uniform throughout the term of this Bond.  The terms of this paragraph shall control and supersede any other provisions of this Bond.

This Bond shall be construed in accordance with and governed by the law of the State of Alaska.

No covenant or agreement contained in this Bond, the Indenture or the First Supplemental Indenture shall be deemed to be a covenant or agreement of any official, officer, agent or employee of the Company in his individual capacity, and no officer of the Company executing this Bond shall be liable personally on this Bond or be subject to any personal liability or accountability by reason of the issuance of this Bond.

This Bond shall not be entitled to any benefit under the Indenture or be valid until this Bond shall have been authenticated by the execution by the Trustee, or its successor as Trustee, of the Certificate of Authentication inscribed hereon.

  

- 3 -

  

IN WITNESS WHEREOF, the Company has caused this Bond to be executed by a duly authorized officer of the Company.

	 	
CHUGACH ELECTRIC ASSOCIATION, INC.

	 	  	  
	 	
By:

	
/s/ Michael R. Cunningham

	  
	 	
Name:

	  
	 	
Title:

	
C.F.O.

  

- 4 -

  

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

 

	  	  	
U.S. BANK NATIONAL ASSOCIATION,

	  	  	
as Trustee

	  	  	  	  
	  	  	
By:

	
/s/ Thomas Zrust

	  
	  	  	  	
Authorized Signatory

	  	  	  	  
	
Date of Authentication:

	
January 21, 2011

	  	  

  

- 5 -

  

THIS 2011 SERIES A BOND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH EXEMPTION IS REQUIRED BY LAW.

THE COMPANY (DEFINED BELOW) IS PERSONALLY OBLIGATED AND FULLY LIABLE FOR THE AMOUNT DUE UNDER THIS BOND AND, SUBJECT TO THE PROVISIONS OF THE INDENTURE (DEFINED BELOW), EACH HOLDER (AS DEFINED IN THE INDENTURE) HAS THE RIGHT TO SUE ON THIS BOND AND OBTAIN A PERSONAL JUDGMENT AGAINST THE COMPANY FOR SATISFACTION OF THE AMOUNT UNDER THIS BOND EITHER BEFORE OR AFTER A FORECLOSURE OF THE INDENTURE UNDER ALASKA STATUTES 09.45.170-09.45.220.

CHUGACH ELECTRIC ASSOCIATION, INC.

FIRST MORTGAGE BONDS, 2011 SERIES A DUE MARCH 15, 2031

	
NO. RA-6

	
ISSUANCE DATE: JANUARY 21, 2011

	
$6,000,000

	
PPN: 171265 A*2

FOR VALUE RECEIVED, the undersigned, CHUGACH ELECTRIC ASSOCIATION, INC. (herein called the “Company”), an electric cooperative organized and existing under the laws of the State of Alaska, hereby promises to pay to ALLSTATE LIFE INSURANCE COMPANY, or registered assigns, the principal sum of SIX MILLION DOLLARS (or so much thereof as shall not have been prepaid) on March 15, 2031, with interest computed on the basis of a 360-day year of twelve 30-day months (a) on the unpaid balance hereof at a rate of 4.20% per annum (plus, upon the occurrence and during the continuation of an Interest Rate Adjustment Event (as hereinafter defined), an additional 2% per annum) from the date hereof, payable semiannually on the 15th day of each March and September, commencing on September 15, 2011, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest, any overdue payment of any Make-Whole Amount (as defined in the First Supplemental Indenture referred to below), payable semiannually as aforesaid (or, at the option of the registered Holder hereof, on demand), at the Default Rate (as defined in the First Supplemental Indenture referred to below).

“Interest Rate Adjustment Event” means the occurrence of any of the following:

(a)           the Company defaults in the performance of Section 7.1(a) or (b) or Section 7.2 of the 2011 Series A Bond Purchase Agreement (as defined below); or

(b)           any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in the Indenture or the 2011 Series A Bond Purchase Agreement (as defined below) or in any writing furnished in connection with the transactions contemplated by the First Supplemental Indenture (referred to below) proves to have been false or incorrect in any material respect on the date as of which made and, with respect to representations and warranties made after the date hereof, for which accurate information has not since been provided in writing to the Holder of this Bond.

  

  

  

Subject to Section 11 of the 2011 Series A Bond Purchase Agreement (defined below), payments of principal of, interest on, and any Make-Whole Amount with respect to this Bond are to be made in lawful money of the United States of America in accordance with the terms of the Indenture.

This Bond is one of the 2011 Series A Bonds (herein called the “Bonds”) issued pursuant to the First Supplemental Indenture, dated as of January 20, 2011 (as from time to time amended, the “First Supplemental Indenture”), between the Company and the Trustee named therein which amends and supplements the Second Amended and Restated Indenture of Trust, dated as of January 20, 2011 (as amended and supplemented from time to time, the “Indenture”) and is entitled to the benefits thereof and the 2011 Series A Bond Purchase Agreement dated January 21, 2011 between the Company and the purchasers listed in Schedule A thereto (the “2011 Series A Bond Purchase Agreement”).  Each Holder of this Bond will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 18 of the 2011 Series A Bond Purchase Agreement and (ii) made the representations set forth in Section 6 of the 2011 Series A Bond Purchase Agreement.  Unless otherwise indicated, capitalized terms used in this Bond shall have the respective meanings ascribed to such terms in the First Supplemental Indenture.

This Bond shall be registered in the name of the Holder hereof.  This Bond is transferable, as provided in the Indenture, only upon the registration books of the Company maintained by the Obligation Registrar, which shall be the Trustee, kept at its principal office, upon presentation at said office of this Bond with the written request of the registered owner hereof or his attorney duly authorized in writing, and a written instrument of transfer satisfactory to the Obligation Registrar duly executed by the registered owner or his duly authorized attorney.

The Bonds shall be issued as fully registered Bonds without coupons and in minimum denominations of $1.00 and any integral multiple of $1.00 in excess thereof. The Trustee may impose a charge sufficient to reimburse the Company or the Trustee for any tax, fee or other governmental charge required to be paid with respect to such exchange or any transfer of a Bond.  The cost, if any, of preparing each new Bond issued upon such exchange or transfer, and any other expenses of the Company or the Trustee incurred in connection therewith, shall be paid by in accordance with Section 3.7 of the Indenture.

The Company will make the required prepayments of principal on this Bond on the dates and in the amount specified in the First Supplemental Indenture.  This Bond is also subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in First Supplemental Indenture, but not otherwise.

If an Event of Default under the Indenture occurs and is continuing, the principal of this Bond may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Indenture.  In the event that the principal of this Bond shall have been declared or otherwise become due and payable as described in the preceding sentence, then, in addition to paying the Holder hereof the entire unpaid principal amount of this Bond and all accrued and unpaid interest hereon (including, but not limited to, interest accrued hereon at the Default Rate), the Company shall pay to the Holder hereof (to the full extent permitted by applicable law) an amount equal to the Make-Whole Amount determined in respect of such principal amount.

  

- 2 -

  

The Holder of this Bond shall have no right to enforce the provisions of the Indenture, or to institute action to enforce the covenants therein, or to take any action with respect to any default under the Indenture, or to institute, appear in or defend any suit or other proceeding with respect thereto, except as provided in the Indenture and the 2011 Series A Bond Purchase Agreement.

All acts and proceedings required by law and by the Articles of Incorporation and Bylaws of the Company necessary to make the 2011 Series A Bonds issued under the Indenture, when executed by the Company, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal obligations of the Company, in accordance with its terms, have been done and taken.

It is the intention of the Holder to comply with the usury laws of the State of Alaska and of the United States of America.  This Bond is hereby expressly limited such that in no contingency or event whatsoever, whether by reason of acceleration, prepayment, or otherwise, shall the amount of interest contracted for, charged or received by the Holder for the use, forbearance, or detention of the principal indebtedness or interest hereof, which remains unpaid from time to time, exceed the highest maximum rate permitted by applicable law.  If fulfillment of any provisions hereof, at the time of performance of such provisions shall be due, shall involve transcending the valid limits prescribed by applicable law, then, ipso facto, the obligation to be fulfilled shall be reduced to the maximum rate allowed by applicable law.  If any Holder receives as interest an amount which will exceed the maximum rate allowed by applicable law, such amount shall be applied to the reduction of the principal amount owing hereunder or on account of any other principal indebtedness owed to Holder and not to the payment of interest, or if such excessive interest exceeds the unpaid balance of principal hereof and such other indebtedness, such excess shall be refunded.  To the extent not prohibited by applicable law, determination of the maximum rate allowed by applicable law shall at all times be made by amortizing, prorating, allocating and spreading in equal parts during the full term of this Bond, all interest at any time contracted for, charged or received from the Company in connection with this Bond, so that the actual rate of interest on account of such indebtedness is uniform throughout the term of this Bond.  The terms of this paragraph shall control and supersede any other provisions of this Bond.

This Bond shall be construed in accordance with and governed by the law of the State of Alaska.

No covenant or agreement contained in this Bond, the Indenture or the First Supplemental Indenture shall be deemed to be a covenant or agreement of any official, officer, agent or employee of the Company in his individual capacity, and no officer of the Company executing this Bond shall be liable personally on this Bond or be subject to any personal liability or accountability by reason of the issuance of this Bond.

This Bond shall not be entitled to any benefit under the Indenture or be valid until this Bond shall have been authenticated by the execution by the Trustee, or its successor as Trustee, of the Certificate of Authentication inscribed hereon.

  

- 3 -

  

IN WITNESS WHEREOF, the Company has caused this Bond to be executed by a duly authorized officer of the Company.

	  	
CHUGACH ELECTRIC ASSOCIATION, INC.

	  	  	  
	  	
By:

	
/s/ Michael R. Cunningham

	  
	  	
Name:

	  
	  	
Title:

	
C.F.O.

  

- 4 -

  

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

	  	  	
U.S. BANK NATIONAL ASSOCIATION,

	  	  	
as Trustee

	  	  	  	  
	  	  	
By:

	
/s/ Thomas Zrust

	  
	  	  	  	
Authorized Signatory

	  	  	  	  
	
Date of Authentication:

	
January 21, 2011

	  	  

  

- 5 -

  

THIS 2011 SERIES A BOND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH EXEMPTION IS REQUIRED BY LAW.

THE COMPANY (DEFINED BELOW) IS PERSONALLY OBLIGATED AND FULLY LIABLE FOR THE AMOUNT DUE UNDER THIS BOND AND, SUBJECT TO THE PROVISIONS OF THE INDENTURE (DEFINED BELOW), EACH HOLDER (AS DEFINED IN THE INDENTURE) HAS THE RIGHT TO SUE ON THIS BOND AND OBTAIN A PERSONAL JUDGMENT AGAINST THE COMPANY FOR SATISFACTION OF THE AMOUNT UNDER THIS BOND EITHER BEFORE OR AFTER A FORECLOSURE OF THE INDENTURE UNDER ALASKA STATUTES 09.45.170-09.45.220.

CHUGACH ELECTRIC ASSOCIATION, INC.

FIRST MORTGAGE BONDS, 2011 SERIES A DUE MARCH 15, 2031

 

	
NO. RA-7

	
ISSUANCE DATE: JANUARY 21, 2011

	
$4,000,000

	
PPN: 171265 A*2

FOR VALUE RECEIVED, the undersigned, CHUGACH ELECTRIC ASSOCIATION, INC. (herein called the “Company”), an electric cooperative organized and existing under the laws of the State of Alaska, hereby promises to pay to ALLSTATE LIFE INSURANCE COMPANY, or registered assigns, the principal sum of FOUR MILLION DOLLARS (or so much thereof as shall not have been prepaid) on March 15, 2031, with interest computed on the basis of a 360-day year of twelve 30-day months (a) on the unpaid balance hereof at a rate of 4.20% per annum (plus, upon the occurrence and during the continuation of an Interest Rate Adjustment Event (as hereinafter defined), an additional 2% per annum) from the date hereof, payable semiannually on the 15th day of each March and September, commencing on September 15, 2011, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest, any overdue payment of any Make-Whole Amount (as defined in the First Supplemental Indenture referred to below), payable semiannually as aforesaid (or, at the option of the registered Holder hereof, on demand), at the Default Rate (as defined in the First Supplemental Indenture referred to below).

“Interest Rate Adjustment Event” means the occurrence of any of the following:

(a)           the Company defaults in the performance of Section 7.1(a) or (b) or Section 7.2 of the 2011 Series A Bond Purchase Agreement (as defined below); or

(b)           any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in the Indenture or the 2011 Series A Bond Purchase Agreement (as defined below) or in any writing furnished in connection with the transactions contemplated by the First Supplemental Indenture (referred to below) proves to have been false or incorrect in any material respect on the date as of which made and, with respect to representations and warranties made after the date hereof, for which accurate information has not since been provided in writing to the Holder of this Bond.

  

  

  

Subject to Section 11 of the 2011 Series A Bond Purchase Agreement (defined below), payments of principal of, interest on, and any Make-Whole Amount with respect to this Bond are to be made in lawful money of the United States of America in accordance with the terms of the Indenture.

This Bond is one of the 2011 Series A Bonds (herein called the “Bonds”) issued pursuant to the First Supplemental Indenture, dated as of January 20, 2011 (as from time to time amended, the “First Supplemental Indenture”), between the Company and the Trustee named therein which amends and supplements the Second Amended and Restated Indenture of Trust, dated as of January 20, 2011 (as amended and supplemented from time to time, the “Indenture”) and is entitled to the benefits thereof and the 2011 Series A Bond Purchase Agreement dated January 21, 2011 between the Company and the purchasers listed in Schedule A thereto (the “2011 Series A Bond Purchase Agreement”).  Each Holder of this Bond will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 18 of the 2011 Series A Bond Purchase Agreement and (ii) made the representations set forth in Section 6 of the 2011 Series A Bond Purchase Agreement.  Unless otherwise indicated, capitalized terms used in this Bond shall have the respective meanings ascribed to such terms in the First Supplemental Indenture.

This Bond shall be registered in the name of the Holder hereof.  This Bond is transferable, as provided in the Indenture, only upon the registration books of the Company maintained by the Obligation Registrar, which shall be the Trustee, kept at its principal office, upon presentation at said office of this Bond with the written request of the registered owner hereof or his attorney duly authorized in writing, and a written instrument of transfer satisfactory to the Obligation Registrar duly executed by the registered owner or his duly authorized attorney.

The Bonds shall be issued as fully registered Bonds without coupons and in minimum denominations of $1.00 and any integral multiple of $1.00 in excess thereof. The Trustee may impose a charge sufficient to reimburse the Company or the Trustee for any tax, fee or other governmental charge required to be paid with respect to such exchange or any transfer of a Bond.  The cost, if any, of preparing each new Bond issued upon such exchange or transfer, and any other expenses of the Company or the Trustee incurred in connection therewith, shall be paid by in accordance with Section 3.7 of the Indenture.

The Company will make the required prepayments of principal on this Bond on the dates and in the amount specified in the First Supplemental Indenture.  This Bond is also subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in First Supplemental Indenture, but not otherwise.

If an Event of Default under the Indenture occurs and is continuing, the principal of this Bond may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Indenture.  In the event that the principal of this Bond shall have been declared or otherwise become due and payable as described in the preceding sentence, then, in addition to paying the Holder hereof the entire unpaid principal amount of this Bond and all accrued and unpaid interest hereon (including, but not limited to, interest accrued hereon at the Default Rate), the Company shall pay to the Holder hereof (to the full extent permitted by applicable law) an amount equal to the Make-Whole Amount determined in respect of such principal amount.

  

- 2 -

  

The Holder of this Bond shall have no right to enforce the provisions of the Indenture, or to institute action to enforce the covenants therein, or to take any action with respect to any default under the Indenture, or to institute, appear in or defend any suit or other proceeding with respect thereto, except as provided in the Indenture and the 2011 Series A Bond Purchase Agreement.

All acts and proceedings required by law and by the Articles of Incorporation and Bylaws of the Company necessary to make the 2011 Series A Bonds issued under the Indenture, when executed by the Company, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal obligations of the Company, in accordance with its terms, have been done and taken.

It is the intention of the Holder to comply with the usury laws of the State of Alaska and of the United States of America.  This Bond is hereby expressly limited such that in no contingency or event whatsoever, whether by reason of acceleration, prepayment, or otherwise, shall the amount of interest contracted for, charged or received by the Holder for the use, forbearance, or detention of the principal indebtedness or interest hereof, which remains unpaid from time to time, exceed the highest maximum rate permitted by applicable law.  If fulfillment of any provisions hereof, at the time of performance of such provisions shall be due, shall involve transcending the valid limits prescribed by applicable law, then, ipso facto, the obligation to be fulfilled shall be reduced to the maximum rate allowed by applicable law.  If any Holder receives as interest an amount which will exceed the maximum rate allowed by applicable law, such amount shall be applied to the reduction of the principal amount owing hereunder or on account of any other principal indebtedness owed to Holder and not to the payment of interest, or if such excessive interest exceeds the unpaid balance of principal hereof and such other indebtedness, such excess shall be refunded.  To the extent not prohibited by applicable law, determination of the maximum rate allowed by applicable law shall at all times be made by amortizing, prorating, allocating and spreading in equal parts during the full term of this Bond, all interest at any time contracted for, charged or received from the Company in connection with this Bond, so that the actual rate of interest on account of such indebtedness is uniform throughout the term of this Bond.  The terms of this paragraph shall control and supersede any other provisions of this Bond.

This Bond shall be construed in accordance with and governed by the law of the State of Alaska.

No covenant or agreement contained in this Bond, the Indenture or the First Supplemental Indenture shall be deemed to be a covenant or agreement of any official, officer, agent or employee of the Company in his individual capacity, and no officer of the Company executing this Bond shall be liable personally on this Bond or be subject to any personal liability or accountability by reason of the issuance of this Bond.

This Bond shall not be entitled to any benefit under the Indenture or be valid until this Bond shall have been authenticated by the execution by the Trustee, or its successor as Trustee, of the Certificate of Authentication inscribed hereon.

  

- 3 -

  

IN WITNESS WHEREOF, the Company has caused this Bond to be executed by a duly authorized officer of the Company.

	  	
CHUGACH ELECTRIC ASSOCIATION, INC.

	  	  	  
	  	
By:

	
/s/ Michael R. Cunningham

	  
	  	
Name:

	  
	  	
Title:

	
C.F.O.

  

- 4 -

  

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

 

	  	  	
U.S. BANK NATIONAL ASSOCIATION,

	  	  	
as Trustee

	  	  	  	  
	  	  	
By:

	
/s/ Thomas Zrust

	  
	  	  	  	
Authorized Signatory

	  	  	  	  
	
Date of Authentication:

	
January 21, 2011

	  	  

  

- 5 -

  

THIS 2011 SERIES A BOND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH EXEMPTION IS REQUIRED BY LAW.

THE COMPANY (DEFINED BELOW) IS PERSONALLY OBLIGATED AND FULLY LIABLE FOR THE AMOUNT DUE UNDER THIS BOND AND, SUBJECT TO THE PROVISIONS OF THE INDENTURE (DEFINED BELOW), EACH HOLDER (AS DEFINED IN THE INDENTURE) HAS THE RIGHT TO SUE ON THIS BOND AND OBTAIN A PERSONAL JUDGMENT AGAINST THE COMPANY FOR SATISFACTION OF THE AMOUNT UNDER THIS BOND EITHER BEFORE OR AFTER A FORECLOSURE OF THE INDENTURE UNDER ALASKA STATUTES 09.45.170-09.45.220.

CHUGACH ELECTRIC ASSOCIATION, INC.

FIRST MORTGAGE BONDS, 2011 SERIES A DUE MARCH 15, 2031

	
NO. RA-8

	
ISSUANCE DATE: JANUARY 21, 2011

	
$4,000,000

	
PPN: 171265 A*2

FOR VALUE RECEIVED, the undersigned, CHUGACH ELECTRIC ASSOCIATION, INC. (herein called the “Company”), an electric cooperative organized and existing under the laws of the State of Alaska, hereby promises to pay to ALLSTATE LIFE INSURANCE COMPANY, or registered assigns, the principal sum of FOUR MILLION DOLLARS (or so much thereof as shall not have been prepaid) on March 15, 2031, with interest computed on the basis of a 360-day year of twelve 30-day months (a) on the unpaid balance hereof at a rate of 4.20% per annum (plus, upon the occurrence and during the continuation of an Interest Rate Adjustment Event (as hereinafter defined), an additional 2% per annum) from the date hereof, payable semiannually on the 15th day of each March and September, commencing on September 15, 2011, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest, any overdue payment of any Make-Whole Amount (as defined in the First Supplemental Indenture referred to below), payable semiannually as aforesaid (or, at the option of the registered Holder hereof, on demand), at the Default Rate (as defined in the First Supplemental Indenture referred to below).

“Interest Rate Adjustment Event” means the occurrence of any of the following:

(a)           the Company defaults in the performance of Section 7.1(a) or (b) or Section 7.2 of the 2011 Series A Bond Purchase Agreement (as defined below); or

(b)           any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in the Indenture or the 2011 Series A Bond Purchase Agreement (as defined below) or in any writing furnished in connection with the transactions contemplated by the First Supplemental Indenture (referred to below) proves to have been false or incorrect in any material respect on the date as of which made and, with respect to representations and warranties made after the date hereof, for which accurate information has not since been provided in writing to the Holder of this Bond.

  

  

  

Subject to Section 11 of the 2011 Series A Bond Purchase Agreement (defined below), payments of principal of, interest on, and any Make-Whole Amount with respect to this Bond are to be made in lawful money of the United States of America in accordance with the terms of the Indenture.

This Bond is one of the 2011 Series A Bonds (herein called the “Bonds”) issued pursuant to the First Supplemental Indenture, dated as of January 20, 2011 (as from time to time amended, the “First Supplemental Indenture”), between the Company and the Trustee named therein which amends and supplements the Second Amended and Restated Indenture of Trust, dated as of January 20, 2011 (as amended and supplemented from time to time, the “Indenture”) and is entitled to the benefits thereof and the 2011 Series A Bond Purchase Agreement dated January 21, 2011 between the Company and the purchasers listed in Schedule A thereto (the “2011 Series A Bond Purchase Agreement”).  Each Holder of this Bond will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 18 of the 2011 Series A Bond Purchase Agreement and (ii) made the representations set forth in Section 6 of the 2011 Series A Bond Purchase Agreement.  Unless otherwise indicated, capitalized terms used in this Bond shall have the respective meanings ascribed to such terms in the First Supplemental Indenture.

This Bond shall be registered in the name of the Holder hereof.  This Bond is transferable, as provided in the Indenture, only upon the registration books of the Company maintained by the Obligation Registrar, which shall be the Trustee, kept at its principal office, upon presentation at said office of this Bond with the written request of the registered owner hereof or his attorney duly authorized in writing, and a written instrument of transfer satisfactory to the Obligation Registrar duly executed by the registered owner or his duly authorized attorney.

The Bonds shall be issued as fully registered Bonds without coupons and in minimum denominations of $1.00 and any integral multiple of $1.00 in excess thereof. The Trustee may impose a charge sufficient to reimburse the Company or the Trustee for any tax, fee or other governmental charge required to be paid with respect to such exchange or any transfer of a Bond.  The cost, if any, of preparing each new Bond issued upon such exchange or transfer, and any other expenses of the Company or the Trustee incurred in connection therewith, shall be paid by in accordance with Section 3.7 of the Indenture.

The Company will make the required prepayments of principal on this Bond on the dates and in the amount specified in the First Supplemental Indenture.  This Bond is also subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in First Supplemental Indenture, but not otherwise.

If an Event of Default under the Indenture occurs and is continuing, the principal of this Bond may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Indenture.  In the event that the principal of this Bond shall have been declared or otherwise become due and payable as described in the preceding sentence, then, in addition to paying the Holder hereof the entire unpaid principal amount of this Bond and all accrued and unpaid interest hereon (including, but not limited to, interest accrued hereon at the Default Rate), the Company shall pay to the Holder hereof (to the full extent permitted by applicable law) an amount equal to the Make-Whole Amount determined in respect of such principal amount.

  

- 2 -

  

The Holder of this Bond shall have no right to enforce the provisions of the Indenture, or to institute action to enforce the covenants therein, or to take any action with respect to any default under the Indenture, or to institute, appear in or defend any suit or other proceeding with respect thereto, except as provided in the Indenture and the 2011 Series A Bond Purchase Agreement.

All acts and proceedings required by law and by the Articles of Incorporation and Bylaws of the Company necessary to make the 2011 Series A Bonds issued under the Indenture, when executed by the Company, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal obligations of the Company, in accordance with its terms, have been done and taken.

It is the intention of the Holder to comply with the usury laws of the State of Alaska and of the United States of America.  This Bond is hereby expressly limited such that in no contingency or event whatsoever, whether by reason of acceleration, prepayment, or otherwise, shall the amount of interest contracted for, charged or received by the Holder for the use, forbearance, or detention of the principal indebtedness or interest hereof, which remains unpaid from time to time, exceed the highest maximum rate permitted by applicable law.  If fulfillment of any provisions hereof, at the time of performance of such provisions shall be due, shall involve transcending the valid limits prescribed by applicable law, then, ipso facto, the obligation to be fulfilled shall be reduced to the maximum rate allowed by applicable law.  If any Holder receives as interest an amount which will exceed the maximum rate allowed by applicable law, such amount shall be applied to the reduction of the principal amount owing hereunder or on account of any other principal indebtedness owed to Holder and not to the payment of interest, or if such excessive interest exceeds the unpaid balance of principal hereof and such other indebtedness, such excess shall be refunded.  To the extent not prohibited by applicable law, determination of the maximum rate allowed by applicable law shall at all times be made by amortizing, prorating, allocating and spreading in equal parts during the full term of this Bond, all interest at any time contracted for, charged or received from the Company in connection with this Bond, so that the actual rate of interest on account of such indebtedness is uniform throughout the term of this Bond.  The terms of this paragraph shall control and supersede any other provisions of this Bond.

This Bond shall be construed in accordance with and governed by the law of the State of Alaska.

No covenant or agreement contained in this Bond, the Indenture or the First Supplemental Indenture shall be deemed to be a covenant or agreement of any official, officer, agent or employee of the Company in his individual capacity, and no officer of the Company executing this Bond shall be liable personally on this Bond or be subject to any personal liability or accountability by reason of the issuance of this Bond.

This Bond shall not be entitled to any benefit under the Indenture or be valid until this Bond shall have been authenticated by the execution by the Trustee, or its successor as Trustee, of the Certificate of Authentication inscribed hereon.

  

- 3 -

  

IN WITNESS WHEREOF, the Company has caused this Bond to be executed by a duly authorized officer of the Company.

	  	
CHUGACH ELECTRIC ASSOCIATION, INC.

	  	  	  
	  	
By:

	
/s/ Michael R. Cunningham

	  
	  	
Name:

	  
	  	
Title:

	
C.F.O.

  

- 4 -

  

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

 

	  	  	
U.S. BANK NATIONAL ASSOCIATION,

	  	  	
as Trustee

	  	  	  	  
	  	  	
By:

	
/s/ Thomas Zrust

	  
	  	  	  	
Authorized Signatory

	  	  	  	  
	
Date of Authentication:

	
January 21, 2011

	  	  

 

  

- 5 -

  

 

THIS 2011 SERIES A BOND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH EXEMPTION IS REQUIRED BY LAW.

THE COMPANY (DEFINED BELOW) IS PERSONALLY OBLIGATED AND FULLY LIABLE FOR THE AMOUNT DUE UNDER THIS BOND AND, SUBJECT TO THE PROVISIONS OF THE INDENTURE (DEFINED BELOW), EACH HOLDER (AS DEFINED IN THE INDENTURE) HAS THE RIGHT TO SUE ON THIS BOND AND OBTAIN A PERSONAL JUDGMENT AGAINST THE COMPANY FOR SATISFACTION OF THE AMOUNT UNDER THIS BOND EITHER BEFORE OR AFTER A FORECLOSURE OF THE INDENTURE UNDER ALASKA STATUTES 09.45.170-09.45.220.

CHUGACH ELECTRIC ASSOCIATION, INC.

FIRST MORTGAGE BONDS, 2011 SERIES A DUE MARCH 15, 2031

 

	
NO. RA-9

	
ISSUANCE DATE: JANUARY 21, 2011

	
$15,000,000

	
PPN: 171265 A*2

FOR VALUE RECEIVED, the undersigned, CHUGACH ELECTRIC ASSOCIATION, INC. (herein called the “Company”), an electric cooperative organized and existing under the laws of the State of Alaska, hereby promises to pay to KNIGHTS OF COLUMBUS, or registered assigns, the principal sum of FIFTEEN MILLION DOLLARS (or so much thereof as shall not have been prepaid) on March 15, 2031, with interest computed on the basis of a 360-day year of twelve 30-day months (a) on the unpaid balance hereof at a rate of 4.20% per annum (plus, upon the occurrence and during the continuation of an Interest Rate Adjustment Event (as hereinafter defined), an additional 2% per annum) from the date hereof, payable semiannually on the 15th day of each March and September, commencing on September 15, 2011, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest, any overdue payment of any Make-Whole Amount (as defined in the First Supplemental Indenture referred to below), payable semiannually as aforesaid (or, at the option of the registered Holder hereof, on demand), at the Default Rate (as defined in the First Supplemental Indenture referred to below).

“Interest Rate Adjustment Event” means the occurrence of any of the following:

(a)           the Company defaults in the performance of Section 7.1(a) or (b) or Section 7.2 of the 2011 Series A Bond Purchase Agreement (as defined below); or

(b)           any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in the Indenture or the 2011 Series A Bond Purchase Agreement (as defined below) or in any writing furnished in connection with the transactions contemplated by the First Supplemental Indenture (referred to below) proves to have been false or incorrect in any material respect on the date as of which made and, with respect to representations and warranties made after the date hereof, for which accurate information has not since been provided in writing to the Holder of this Bond.

  

  

  

Subject to Section 11 of the 2011 Series A Bond Purchase Agreement (defined below), payments of principal of, interest on, and any Make-Whole Amount with respect to this Bond are to be made in lawful money of the United States of America in accordance with the terms of the Indenture.

This Bond is one of the 2011 Series A Bonds (herein called the “Bonds”) issued pursuant to the First Supplemental Indenture, dated as of January 20, 2011 (as from time to time amended, the “First Supplemental Indenture”), between the Company and the Trustee named therein which amends and supplements the Second Amended and Restated Indenture of Trust, dated as of January 20, 2011 (as amended and supplemented from time to time, the “Indenture”) and is entitled to the benefits thereof and the 2011 Series A Bond Purchase Agreement dated January 21, 2011 between the Company and the purchasers listed in Schedule A thereto (the “2011 Series A Bond Purchase Agreement”).  Each Holder of this Bond will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 18 of the 2011 Series A Bond Purchase Agreement and (ii) made the representations set forth in Section 6 of the 2011 Series A Bond Purchase Agreement.  Unless otherwise indicated, capitalized terms used in this Bond shall have the respective meanings ascribed to such terms in the First Supplemental Indenture.

This Bond shall be registered in the name of the Holder hereof.  This Bond is transferable, as provided in the Indenture, only upon the registration books of the Company maintained by the Obligation Registrar, which shall be the Trustee, kept at its principal office, upon presentation at said office of this Bond with the written request of the registered owner hereof or his attorney duly authorized in writing, and a written instrument of transfer satisfactory to the Obligation Registrar duly executed by the registered owner or his duly authorized attorney.

The Bonds shall be issued as fully registered Bonds without coupons and in minimum denominations of $1.00 and any integral multiple of $1.00 in excess thereof. The Trustee may impose a charge sufficient to reimburse the Company or the Trustee for any tax, fee or other governmental charge required to be paid with respect to such exchange or any transfer of a Bond.  The cost, if any, of preparing each new Bond issued upon such exchange or transfer, and any other expenses of the Company or the Trustee incurred in connection therewith, shall be paid by in accordance with Section 3.7 of the Indenture.

The Company will make the required prepayments of principal on this Bond on the dates and in the amount specified in the First Supplemental Indenture.  This Bond is also subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in First Supplemental Indenture, but not otherwise.

If an Event of Default under the Indenture occurs and is continuing, the principal of this Bond may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Indenture.  In the event that the principal of this Bond shall have been declared or otherwise become due and payable as described in the preceding sentence, then, in addition to paying the Holder hereof the entire unpaid principal amount of this Bond and all accrued and unpaid interest hereon (including, but not limited to, interest accrued hereon at the Default Rate), the Company shall pay to the Holder hereof (to the full extent permitted by applicable law) an amount equal to the Make-Whole Amount determined in respect of such principal amount.

  

- 2 -

  

The Holder of this Bond shall have no right to enforce the provisions of the Indenture, or to institute action to enforce the covenants therein, or to take any action with respect to any default under the Indenture, or to institute, appear in or defend any suit or other proceeding with respect thereto, except as provided in the Indenture and the 2011 Series A Bond Purchase Agreement.

All acts and proceedings required by law and by the Articles of Incorporation and Bylaws of the Company necessary to make the 2011 Series A Bonds issued under the Indenture, when executed by the Company, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal obligations of the Company, in accordance with its terms, have been done and taken.

It is the intention of the Holder to comply with the usury laws of the State of Alaska and of the United States of America.  This Bond is hereby expressly limited such that in no contingency or event whatsoever, whether by reason of acceleration, prepayment, or otherwise, shall the amount of interest contracted for, charged or received by the Holder for the use, forbearance, or detention of the principal indebtedness or interest hereof, which remains unpaid from time to time, exceed the highest maximum rate permitted by applicable law.  If fulfillment of any provisions hereof, at the time of performance of such provisions shall be due, shall involve transcending the valid limits prescribed by applicable law, then, ipso facto, the obligation to be fulfilled shall be reduced to the maximum rate allowed by applicable law.  If any Holder receives as interest an amount which will exceed the maximum rate allowed by applicable law, such amount shall be applied to the reduction of the principal amount owing hereunder or on account of any other principal indebtedness owed to Holder and not to the payment of interest, or if such excessive interest exceeds the unpaid balance of principal hereof and such other indebtedness, such excess shall be refunded.  To the extent not prohibited by applicable law, determination of the maximum rate allowed by applicable law shall at all times be made by amortizing, prorating, allocating and spreading in equal parts during the full term of this Bond, all interest at any time contracted for, charged or received from the Company in connection with this Bond, so that the actual rate of interest on account of such indebtedness is uniform throughout the term of this Bond.  The terms of this paragraph shall control and supersede any other provisions of this Bond.

This Bond shall be construed in accordance with and governed by the law of the State of Alaska.

No covenant or agreement contained in this Bond, the Indenture or the First Supplemental Indenture shall be deemed to be a covenant or agreement of any official, officer, agent or employee of the Company in his individual capacity, and no officer of the Company executing this Bond shall be liable personally on this Bond or be subject to any personal liability or accountability by reason of the issuance of this Bond.

This Bond shall not be entitled to any benefit under the Indenture or be valid until this Bond shall have been authenticated by the execution by the Trustee, or its successor as Trustee, of the Certificate of Authentication inscribed hereon.

  

- 3 -

  

IN WITNESS WHEREOF, the Company has caused this Bond to be executed by a duly authorized officer of the Company.

	 	  	  
	 	
CHUGACH ELECTRIC ASSOCIATION, INC.

	 	  	  
	 	
By:

	
/s/ Michael R. Cunningham

	  
	 	
Name:

	  
	 	
Title:

	
C.F.O.

  

- 4 -

  

 

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

	  	  	
U.S. BANK NATIONAL ASSOCIATION,

	  	  	
as Trustee

	  	  	  	  
	  	  	
By:

	
/s/ Thomas Zrust

	  
	  	  	  	
Authorized Signatory

	  	  	  	  
	
Date of Authentication:

	
January 21, 2011

	  	  

 

 

- 5 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00187-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00187-of-00352.parquet"}]]