O-1991-1755 - Laserfiche WebLink

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e e (a) If payment of principal or interest due on the nonds has not been made to the Paying Agent/Registrar in time to pay the registered owners of the Bonds, the Paying Agent/Registrar or any registered owner to whom such payment is due shall so notify AMIlAC Indemnity Corporation, by telephonic or telegraphic notice, subsequently confirmed in writing, or written notice by registered or certified mail. Such notice shall specify the amount of the anticipated deficiency, the Bonds to which such deficiency is applicable, and whether such Bonds will be deficient as to principal or interest, or both. AMBAC Indemnity, on the later of the date due for payment or within one business day after receipt of notice of nonpayment, will deposit sufficient money with the United States Trust Company of New York, as insurance trustee for AMBAC Indemnity or any successor insurance trustee (the "Insurance Trustee"). (b) The Paying Agent/Uegistrar shall, after giving notice to AMBAC Indemnity as provided in (a) above, make avallnble to AMBAC Indemnity and, at AMBAC Indemnity's direction, to the Insurance Trustee, the registration books of the City maintained by the Paying Agent/Registrar, and all records relating to the Funds and Accounts maintained under this Ordinance. (c) The Paying Agent/Registrar shall provide AMBAC Indemnity and the Insurance Trustee with a list of registered owners of Bonds entitlcd to receive principal or interest payments from AMBAC Indemnity uncleI' the terms of the municipal bond guaranty insul'Unce policy issued by AMDAC Indemnity insuring the payment 'when' dlJe of ,the principal of and interest on the Bonds as prQvided therein (the "Municipal Bond Guaranty Insurance Policy"), and shall make arrangements with the Insurance Trustee (i) to mail checks or drafts to the registered owners of Bonds entitled to receive full or partial interest payments from AMBAC Indemnity and (Ii) to pay prin- cipal llpon Bonds surrendered to the Insurance Trustee by the registered owners of Bonds entitled to receive full or pa'rtial principal payments from AMBAC Indemnity. (d) The Paying Agent/Registrar shall, at the time it provides notice to AMBAC Indemnity pursuant to (a) above, notify registered owners of Donds entitled to receive the payment of principal or interest thereon from AMllAC Indemnity (I) as to the fact of such entitlement; (Ii) that AMBAC Indemnity will remit to them all or a part of the interest payments next coming duc; (Hi) that should they be entitled to receive full pnyment of principal from AMllAC Indemnity, they mllst present and surrender their Bonds together with any appropriate instrument of assignment for payment to the Insurance Trustee, and not the Paying Agent/Registrar; and (Iv) that should they be entitled to receive partial payment of principal from AMBAC Indemnity, they must prescnt and surrender their Bonds for payment thereon first to the Paying Agent/Registrar, who shall note on such Bonds the portion of the principal paid by the Paying Agent/R(3gistror, and then, along with an appropriate instrument of assignment, to the Insurance Trustee, which will then pay the unpaid portion of principal. The Insurance Trustee shaH disburse to registered owners of Bonds, or the Paying Agent/Registrar, the payment due less any amount held by the 29