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FINANCIAL GUARANTY INSURANCE <br />The following information has been furnished by Ambac Assurance for use in this Official <br />Statement. <br />Payment Pursuant to Financial Guaranty Insurance Policy <br />Ambac Assurance has made a commitment to issue a financial guaranty insurance policy (the <br />"Financial Guaranty Insurance Policy") relating to the Obligations effective as ofthe date of issuance ofthe <br />Obligations. Under the terms of the Financial Guaranty Insurance Policy, Ambac Assurance will pay to The <br />Bank of New York, in New York, New York or any successor thereto (the "Insurance Trustee") that <br />portion of the principal of and interest on the Obligations which shall become Due for Payment but shall <br />be unpaid by reason of Nonpayment by the Obligor (as such terms are defined in the Financial Guaranty <br />Insurance Policy). Ambac Assurance will make such payments to the Insurance Trustee on the later ofthe <br />date on which such principal and interest becomes Due for Payment or within one business day following <br />the date on which Ambac Assurance shall have received notice of Nonpayment from the Trustee/Paying <br />Agent/Bond Registrar. The insurance will extend for the term of the Obligations and, once issued, cannot <br />be canceled by Ambac Assurance. <br />The Financial Guaranty Insurance Policy will insure payment only on stated maturity dates and on <br />mandatory sinking fund installment dates, in the case of principal, and on stated dates for payment, in the <br />case of interest. If the Obligations become subject to mandatory redemption and insufficient funds are <br />available for redemption of all outstanding Obligations, Ambac Assurance will remain obligated to pay <br />principal of and interest on outstanding Obligations on the originally scheduled interest and principal <br />payment dates including mandatory sinking fund redemption dates. In the event of any acceleration of the <br />principal of the Obligations, the insured payments will be made at such times and in such amounts as would <br />have been made had there not been an acceleration. <br />In the event the Paying Agent has notice that any payment of principal of or interest on an <br />Obligation which has become Due for Payment and which is made to a Holder by or on behalf of the <br />Obligor has been deemed a preferential transfer and theretofore recovered from its registered owner <br />pursuant to the United States Bankruptcy Code in accordance witha final, nonappealable order ofa court <br />of competent jurisdiction, such registered owner will be entitled to payment fromAmbac Assurance to the <br />extent of such recovery if sufficient funds are not otherwise available. <br />The Financial Guaranty Insurance Policy doesnot insure any risk other than Nonpayment, as <br />defined in the Policy. Specifically, the Financial Guaranty Insurance Policy does not cover <br />18 <br />