200510856 - Laserfiche WebLink

Browse

200510856 (a) At least one (1) business day prior to all Interest Payment Dates the Trustee will determine whether there will be sufficient funds in the Bond Fund to pay the principal of or interest on the Building Bonds on such Interest Payment Date. If the Trustee determines that there will be insufficient funds in the Bond Fund, the Trustee shall so notify the Insurer. Such notice shall specify the amount of the anticipated deficiency, the Building Bonds to which such deficiency is applicable and whether such Building Bonds will be deficient as to principal or interest, or both. If the Trustee has not so notified the Insurer at least one (1) business day prior to an Interest Payment Date, the Insurer will make payments of principal or interest due on the Building Bonds on or before the first (1st) business day next following the date on which the Insurer shall have received notice of nonpayment from the Trustee. (b) The Trustee shall, after giving notice to the Insurer as provided in Section 14.03(a) above, make available to the Insurer and, at the Insurer's direction, to the Insurance Trustee, the registration books of the Corporation maintained by the Trustee and all records relating to the funds and accounts maintained under this Indenture. (c) The Trustee shall provide the Insurer and the Insurance Trustee with a list of registered owners of Building Bonds entitled to receive principal or interest payments from the Insurer under the terms of the Policy, and shall make arrangements with the Insurance Trustee (i) to mail checks or drafts to the registered owners of Building Bonds entitled to receive full or partial interest payments from the Insurer and (ii) to pay principal upon Building Bonds surrendered to the Insurance Trustee by the registered owners of Building Bonds entitled to receive full or partial principal payments from the Insurer. (d) The Trustee shall, at the time it provides notice to the Insurer pursuant to Section 14.03(a) above, notify registered owners of Building Bonds entitled to receive the payment of principal or interest thereon from the Insurer (i) as to the fact of such entitlement, (ii) that the Insurer will remit to them all or a part of the interest payments next coming due upon proof of Bondholder entitlement to interest payments and delivery to the Insurance Trustee, in form satisfactory to the Insurance Trustee, of an appropriate assignment of the registered owner's right to payment, (iii) that should they be entitled to receive full payment of principal from the Insurer, they must surrender their Building Bonds (along with an appropriate instrument of assignment in form satisfactory to the Insurance Trustee to permit ownership of such Building Bonds to be registered in the name of the Insurer) for payment to the Insurance Trustee, and not the Trustee and (iv) that should they be entitled to receive partial payment of principal from the Insurer, they must surrender their Building Bonds for payment thereon first to the Trustee, who shall note on such Building Bonds the portion of the principal paid by the Trustee and then, along with an appropriate instrument of assignment in form satisfactory to the Insurance Trustee, to the Insurance Trustee, which will then pay the unpaid portion of principal. (e) In the event that the Trustee has notice that any payment of principal of or interest on a Building Bond which has become Due for Payment (as defined in the Policy) and which is made to a Bondholder by or on behalf of the Corporation (including any of the Payments as made by the City) has been deemed a preferential transfer and theretofore 093