2.4.11.2 Amendments Requiring Debt Holder Consent

2.4.11.2 Amendments Requiring Debt Holder Consent

Amendments not permitted to be made without debt holder consent, and not requiring the consent of each affected debt holder, may be made with the consent of a percentage of the holders of debt, where the percentage is related to the percentage of principal still outstanding, sometimes a simple majority, sometimes 60%, and sometimes two thirds. Examples of such amendments include:

• Amendments to add additional authorized investments for bond funds (See Section 9.3, Investment Authority and Controlling Documents)
  
  
• Amendments to definitions to “modernize” provisions to address matters like the treatment of tax subsidy bonds (treating Build America Bond subsidy payments as an offset to debt service rather than as revenues)
  
  
• Amendments to reduce reserve fund amount requirements to reflect current practices and security needs or to allow the use of surety bonds
  
  
• Amendments to remove a requirement to set aside moneys for debt service on a monthly basis when debt service is payable semiannually