1. (a) A sinking fund provision whereby all or a reasonable portion of the issue is to be retired in installments prior to maturity. The deferral of sinking fund payments and the amount of the balloon payment at maturity which will be permitted will depend upon the financial condition and other circumstances of the issuer.
2. (b) An appropriate negative pledge or equal protection clause restricting the creation of liens on the property of the issuer.
3. (c) If the debt is unsecured, an appropriate restriction on the creation of other funded debt.

4. (d) An appropriate restriction on the payment of dividends upon stock of the issuer.

   Such protective provisions will not be required in connection with debt securities having a rating or quality making such provisions unnecessary.

If nonconvertible debt securities are proposed to be issued, the indenture or other instrument pursuant to which they are issued should normally provide for the following:

Note: Authority cited: Section 25610, Corporations Code. Reference: Section 25140, Corporations Code.

History

1. Amendment filed 2-2-83; effective thirtieth day thereafter (Register 83, No. 6).