1.   Auction rate preferred shares are variable rate securities where the interest coupon rate is reset on a daily, weekly or monthly basis.

2.   On the other hand, these bonds can be bought back by the Federal Home Loan Banks any time the rate is reset.

3.   Since commercial paper matures so quickly, the rates are reset frequently, making the securities perform like floating-rate loans.

4.   That usually requires issuers to maintain some type of reserve or credit agreement and to hire a so-called remarketing agent that resets rates and handles redemptions.

5.   The conversion rate would be reset if the stock fell, but not if rose.

6.   When rates are reset, investors are given the option of accepting the new rate or getting their money back.

7.   The Central Bank said in a statement that it will reset the rate every six months.