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1996-042
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1996-042
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Last modified
10/19/2015 3:53:36 PM
Creation date
10/15/2015 2:28:16 PM
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Resolutions
Resolution Number
1996-042
Approved Date
03/19/1996
Resolution Type
Sale of water and sewer revenue bonds
Subject
Bonb Purchase Contract
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Financial Guamwq hwirmur <br />Congauy <br />thereunder) after applying all available cash in <br />the reserve fund and prior to replenishment of any <br />such cash draws, respectively. <br />(b) If the Issuer shall fail to repay any Policy Costs <br />in accordance with the requirements of Paragraph <br />6(a) hereof, Financial Guaranty shall be entitled <br />to exercise any and all remedies available at law <br />or under the Authorizing Document other than (i) <br />acceleration of the metiirity of the Bonds or (ii) <br />remedies which would adversely affect Bondholders. <br />(c) The Authorizing Document shall not be discharged <br />until all Policy Costs owing to Financial Guaranty <br />shall have been paid in full. <br />(d) As security for the Issuer's repayment obligations <br />with respect to the Reserve Policy, Financial <br />Guaranty shall be granted a security interest <br />(subordinate only to that of the Bondholders) in <br />all revenues and collateral pledged as security for <br />the Bonds. <br />(e) The additional bonds test and the rate covenant in <br />the Authorizing Document shall expressly provide <br />for at least one times coverage of the Issuer's <br />obligations with respect to repayment of Policy <br />Costs then due and owing. Furthermore, no <br />additional bonds may be issued without Financial <br />Guaranty's prior written consent if any Policy <br />Costs are past due and owing to Financial Guaranty. <br />(f) The Authorizing Document shall require the Trustee <br />to ascertain the necessity for a claim upon the <br />Reserve Policy and to provide notice to Financial <br />Guaranty in accordance with the terms of the <br />Reserve Policy at least two business days prior to <br />each interest payment date. <br />(g) The Authorizing Document shall not be modified or <br />amended without the prior written consent of <br />Financial Guaranty. <br />(h) Financial Guaranty shall be provided with written <br />notice of the resignation or removal of the Trustee <br />and the appointment of a successor thereto and of <br />the issuance of additional indebtedness of the <br />Issuer at 115 Broadway, New York, New York 10006 <br />Attention: Managing Counsel. <br />(i) All revisions which are required to be made to the <br />Authorizing Document pursuant to Financial <br />n,,Re I of 5 <br />
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