assets that have greater volatility due to poor credit
quality and longer maturity. Market valuation peri-
ods greater than weekly will lead to larger discount
factors for most assets. Standard & Poor’s also
needs to understand the actions an issuer will take
if the valuation falls short of expected level. Once
collateral levels and valuation periods are deter-
mined, including these requirements in the legal
debt documents will be viewed positively in the
assignment of ratings.What Are Available Assets?
Available assets are defined as cash and fixed-
income investments that are not needed to meet
daily operating needs. Should an issuer need to
liquidate its assets to cover a failed commercial
paper rollover or VRDO tender, the reduction in
the issuer’s liquidity position should not impair the
issuer’s ongoing ability to meet its daily cash flow
needs, including the payment of long-term debt
obligations. In short, the liquidation and use ofCross Sector Criteria24 Standard & Poor’s Public Finance Criteria 2007
Daily period mode. Optional tender date of one day.
To be completed by
■10:00am–Holder delivers optional tender notice to Tender Agent
■10:15am–Tender Agent notifies Guarantor, Trustee, and Remarketing Agent of receipt of notice
■12:00 noon–Remarketing Agent notifies Tender Agent of bonds remarketed and registration instructions
■12:30pm–Tender Agent notifies Guarantor and Trustee of purchase price and projected additional funding amount
■1:15pm–Remarketing Agent and Guarantor, if necessary, deliver monies to Tender Agent to be applied for purchase of
tendered bonds
■1:30pm–If necessary, Tender Agent notifies Guarantor of additional funding amount
■4:30pm–If necessary, Guarantor shall deliver additional funding amount to Tender AgentWeekly period mode. Optional tender ("OTD") of seven days.
To be completed by
■4:00pm–Holder delivers optional tender notice to Tender Agent. OTD of six days.
■12.00pm–Tender Agent notifies Guarantor, Trustees, and Remarketing Agent of receipt of notice. OTD of one business day.
■4:00pm–Remarketing Agent notifies Tender Agent of bonds remarketed and registration instructions.Optional tender day. To be completed by
■10:00am–Holder delivers bonds to Tender Agent; Tender Agent notifies Guarantor and Trustee of purchase price and projected
additional funding amount
■12:00pm–Tender Agent makes available to Remarketing Agent new bonds for redelivery
■1:15pm–Remarketing Agent and Guarantor, if necessary, deliver monies to Tender Agent to be applied for purchase of
tendered bonds
■1:30pm–If necessary, Tender Agent notifies Guarantor of additional funding amount
■4:30pm–If necessary, Guarantor shall deliver additional funding amount to Tender Agent
Short-term period. Mandatory tender date.
To be completed by
■10:00am–Holder delivers bonds to Tender Agent
■12:00pm–Remarketing Agent notifies Tender Agent of bonds remarketed and registration instructions
■12:30pm–Tender Agent notifies Trustees of purchase price and projected additional funding amount
■1:15pm–Remarketing Agent, if necessary, deliver monies to Tender Agent to be applied for purchase of tendered bonds
■1:30pm–If necessary, Tender Agent notifies Trustees of additional funding amount
■4:30pm–If necessary, Trustees shall deliver additional funding amount to Tender AgentIf you have questions regarding any of the above, please contact me. Thank you.Sincerely,[NAME]
["ISSUER"]Sample Liquidation Letter(continued)