New Jersey § 52:18b-4

§ 52:18b-4.

As used in this act, unless the context clearly requires a different meaning: “ Ancillary facility ” means any revolving credit agreement, agreement establishing a line of credit or

letter of credit, reimbursement agreement, interest rate exchange or similar agreement,

currency exchange agreement, interest rate floor or cap, options, puts or calls to

hedge payment, currency, rate, spread or similar exposure, or similar agreements,

float agreements, forward agreements, insurance contract, surety bond, commitment

to purchase or sell securities, purchase or sale agreement, or commitments or other

contracts or agreements and other security agreements approved by the corporation,

including without limitation any arrangement referred to in subsection j., k., l.

or m. of section 6 of this act; “ Benefitted parties ” means person, firms or corporations that enter into ancillary facilities with the

corporation according to the provisions of this act; “ Code ” means the United States Internal Revenue Code of 1986, as amended, and any successor

provision of law; “ Costs of issuance ” means any item of expense directly or indirectly payable or reimbursable by the

corporation and related to the authorization, sale or issuance of securities, including

without limitation underwriting fees, and fees and expenses of consultants and fiduciaries; “ Corporation ” means the Tobacco Settlement Financing Corporation established by section 3 of this

act; “ Encumbered tobacco revenues ” means that portion of the TSRs that is pledged by the corporation to the repayment

of any securities pursuant to the terms of the applicable corporation resolution,

trust agreement or trust indenture; “ Financing costs ” means all capitalized interest, operating and debt service reserves, costs of issuance,

fees for credit and liquidity enhancements and other costs as the corporation determines

to be desirable in issuing, securing and marketing the securities; “ Interest rate exchange or similar agreement ” means a written contract with a counterparty to provide for an exchange of payments

based upon fixed and/or variable interest rates; “ Master settlement agreement ” means the master settlement agreement, dated November 23, 1998, among the attorneys

general of 46 states, including the State, the District of Columbia, the Commonwealth

of Puerto Rico, Guam, the United States Virgin Islands, American Samoa and the Territory

of the Northern Mariana Islands, on the one hand, and certain tobacco manufacturers,

on the other hand; “ Net proceeds ” means the amount of proceeds remaining following each sale of securities which are

not required by the corporation to establish and fund reserve or escrow funds or termination

or settlement payments under ancillary facilities and to provide the financing costs

and other expenses and fees directly related to the authorization and issuance of

securities; “ Operating expenses ” means the reasonable operating expenses of the corporation, including without limitation

the cost of preparation of accounting and other reports, costs of maintenance of the

ratings on the securities, insurance premiums and costs of annual meetings or other

required activities of the corporation, and fees and expenses incurred for consultants

and fiduciaries; “ Outstanding ” means, when used with respect to securities, all securities other than securities

that shall have been paid in full at maturity or that may be deemed not outstanding

pursuant to the applicable corporation resolution, trust indenture or trust agreement

authorizing the issuance of such securities and when used with respect to ancillary

facilities, all ancillary facilities other than ancillary facilities that have been

paid in full or that may be deemed not outstanding under such ancillary facilities; “ Qualifying statute ” means “qualifying statute” as defined in the master settlement agreement; currently P.L.1999, c. 148 ( C.52:4D-1 et seq. ); “ Residual interests ” means: the unencumbered tobacco revenues; the net proceeds not previously paid

to the State; the income of the corporation that is in excess of the corporation's

requirements to pay its operating expenses, debt service, sinking fund requirements,

reserve fund or escrow fund requirements and any other contractual obligations to

the owners of the securities or benefitted parties, or that may be incurred in connection

with the issuance of the securities or the execution of ancillary facilities; and

such contractual rights, if any, as shall be provided to the State in accordance with

the terms of any sale agreements; “ Sale agreement ” means any agreement authorized pursuant to section 5 of this act in which the State

provides for the sale of TSRs to the corporation; “ Securities ” means any securities, including without limitation any bonds, notes and other evidence

of indebtedness, issued by the corporation pursuant to section 7 of this act; “ State ” means the State of New Jersey; “ State representative ” means the State acting by and through the State Treasurer; “ State's tobacco receipts ” means a) all tobacco settlement payments that are received by the State that are

required to be made, pursuant to the terms of the master settlement agreement, by

tobacco manufacturers to the State, and b) the State's rights to receive such tobacco

settlement payments; “ TSRs ” means the portion (which may include any or all) of the State's tobacco receipts

sold to the corporation pursuant to this act and any sale agreement; and “ Unencumbered tobacco revenues ” means that portion of the TSRs that are not subject to the pledge of the applicable

corporate resolution, trust agreement or trust indenture by the corporation to the

repayment of any securities issued pursuant to the terms of such applicable corporation

resolution, trust agreement or trust indenture.