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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (4479)	2/22/2008 8:22:24 PM
From: Paul Kern	Respond to of 71475

More on variable rate demand notes from Wachovia wachovia.com VARIABLE RATE DEMAND NOTES A Variable Rate Demand Note (VRDN),* also called a "low-floater" or "seven day floater," is a long term, taxable, or tax-exempt bond issued on a variable rate basis that can be tendered for purchase at par whenever rates reset upon seven-day notice by the investor. The bonds tendered are then resold by the remarketing agent in the secondary market to other investors. VRDNs can be converted to a long term fixed rate security upon appropriate notice by the issuer. Terms and Structures * Maturity Bond maturity is up to 15 years. Rate normally resets every seven days. Customer has the option to demand purchase of bonds at par on any business day with seven days notice to the Tender Agent through the Remarketing Agent. * Issued VRDNs can be private or public issues placed to corporate and institutional investors. * Form Can be held in Wachovia's Institutional Trust Services Custody Department or registered in the owner's name and delivered per instructions. * Quoted VRDNs are quoted on a yield basis. * Interest Usually paid monthly or quarterly. * Rating The borrower may or may not elect to have the bonds rated. The bonds are typically supported by an irrevocable Letter of Credit from Wachovia Bank, National Association or other financial institutions. * Tax Status Tax-exempt VRDNs are exempt from federal tax and, if the investor resides in the state of issuance, state tax as well. Taxable VRDNs are subject to federal tax and may be subject to state tax.