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Financial Omnmi% In,urance <br />Campuny <br />Page B-2 <br />6. If the Issuer shall fail to repay any Policy Costs in <br />accordance with the requirements of the Authorizing <br />Document and this Agreement, Financial Guaranty shall <br />be entitled to exercise any and all remedies available <br />at law or under the Authorizing Document other than (i) <br />acceleration of the maturity of the Bonds or (ii) <br />remedies which would adversely affect Bondholder,;. <br />7. The Issuer shall ascertain the necessity for a claim <br />upon the Policy and provide notice to the Insurer in <br />accordance with the terms of the Reserve Policy at <br />least two business days prior to each date upon which <br />interest or principal is due on the Series Bonds. <br />8. All cash and investments in the reserve fund shall be <br />utilized for making required transfers to the debt <br />service fund for payment of debt service on the Series <br />Bonds before making any draws on any alternative <br />credit instrument. Repayment of any Policy Costs shall <br />be made prior to replenishment of any such cash <br />amounts. Draws on all alternative credit instruments <br />on which there is available coverage shall be made on a <br />pro rata basis (calculated by reference to coverage <br />then available under each such alternative credit <br />instrument) after applying available cash and <br />investments in the reserve fund. Repayment of Policy <br />Costs and reimbursement of amounts with respect to <br />alternative credit instruments shall be made on a pro <br />rata basis (calculated by reference to the coverage <br />then available under each such alternative credit <br />instrument) prior to replenishment of any cash draws on <br />the reserve fund. <br />9. The Authorizing Document shall not be modified or <br />amended without the prior written consent of the Bond <br />Insurer. <br />10. The Authorizing Document shall not be discharged until <br />all Policy Costs owing to Financial Guaranty shall have <br />been paid in full. <br />11. As security for the Issuer's repayment obligations with <br />respect to the Reserve Policy, Financial Guaranty shall <br />be granted a security interest (subordinate only to <br />that of the Bondholders) in all revenues and collateral <br />pledged as security for the Bonds. <br />12. The [rate covenant] and [additional bonds test] in the <br />Authorizing Document shall be calculated with at least <br />one times coverage of the Issuer's obligations with <br />respect to repayment of Policy Costs then due and <br />