1993-102 - Laserfiche WebLink

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Municipal Bond Insurance Payments of principal of and interest on the Series 1993 Bonds are to be insured through a policy to be issued by AMBAC Indemnity Corporation (the "Insurer") which policy will take effect upon the delivery of the Series 1993 Bonds. See "MUNICIPAL BOND INSURANCE" herein and "SPECIMEN MUNICIPAL BOND INSURANCE POLICY" attached hereto as Appendix D. Additional Parity Bonds No additional bonds on a parity with the Series 1993 Bonds ("Additional Parity Bonds") may be issued under the Resolution, except for the purpose of refunding outstanding Bonds, but no refunding may be undertaken if it shall result in an increase in the maximum amount of principal and interest on all outstanding Bonds becoming.due in any ensuing Fiscal Year. In addition, the County may issue additional bonds on a parity with the Senior Half -Cent Sales Tax Bonds as described under the caption "THE SENIOR HALF -CENT SALES TAX BONDS" herein. MUNICIPAL BOND INSURANCE The following information has been furnished by AMBAC Indemnity Corporation (the "Insurer") for use in this Official Statement. Reference is made to Appendix D for a specimen of the Insurer's policy. Payment Pursuant to Municipal Bond Insurance Policy The Insurer has made a commitment to issue a municipal bond insurance policy (the "Municipal Bond Insurance Policy") relating to the Series 1993 Bonds effective as of the date of issuance of the Series 1993 Bonds. Under the terms of the Municipal Bond Insurance Policy, the Insurer will pay to the United States Trust Com- pany of New York, in New York, New York or any successor thereto (the "Insurance Trustee") that portion of the principal of and interest on the Series 1993 Bonds which shall become Due for Payment but shall be unpaid by reason of Nonpayment by the County (as such terms are defined in the Municipal Bond Insurance Policy). The Insurer will make such payments to the Insurance Trustee on the later of the date on which such principal and interest becomes Due for Payment or within one business day following the date on which the Insurer shall have received notice of Nonpayment from the Trustee. The insurance will extend for the term of the Series 1993 Bonds and, once issued, cannot be canceled by the Insurer. The Municipal Bond Insurance Policy will insure payment only on stated maturity dates and on manda- tory sinking fund installment dates, in the case of principal, and on stated dates for payment, in the case of interest. If the Series 1993 Bonds become subject to mandatory redemption and insufficient funds are available for redemption of all outstanding Series 1993 Bonds, the Insurer will remain obligated to pay principal of and interest on outstanding Series 1993 Bonds on the originally scheduled interest and principal payment dates including mandatory sinking fund redemption dates. In the event of any acceleration of the principal of the Series 1993 Bonds, the insured payments will be made at such times and in such amounts as would have been made had there not been an acceleration. In the event the Trustee has notice that any payment of principal of or interest on a Series 1993 Bond which has become Due for Payment and which is made to a Bondholder by or on behalf of the County has been deemed a preferential transfer and theretofore recovered from its registered owner pursuant to the United States Bankruptcy Code in accordance with a final, nonappealable order of a court of competent jurisdiction, such registered owner will be entitled to payment from the Insurer to the extent of such recovery if sufficient funds are not otherwise available.