Ord 2002-054 - Laserfiche WebLink

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(ii) Amounts in respect of Policy Costs paid to Financial Security shall be credited first to interest due, then to the expenses due and then to principal due. As and to the extent that payments are made to Financial Security on account of principal due, the coverage under the Surety Policy will be increased by a like amount, subject to the terms of the Surety Policy. (iii) All cash and investments in the debt service reserve fund established for the Bonds (the "Reserve Fund") shall be transferred to the debt service fund for payment of debt service on Bonds before any drawing may be made on the Surety Policy or any other credit facility credited to the Surety Policy Fund in lieu of cash ("Credit Facility"). Payment of any Policy Costs shall be made prior to replenishment of any such cash amounts. Draws on all Credit Facilities (including the Surety Policy) on which there is available coverage shall be made on a pro-rata basis (calculated by reference to the coverage then available thereunder) after applying all available cash and investments in the Reserve Fund. Payment of Policy Costs and reimbursement of amounts with respect to other Credit Facilities shall be made on a pro-rata basis prior to replenishment of any cash drawn from the Reserve Fund. (b) If the City shall fail to pay any Policy Costs in accordance with the requirements of Paragraph (a) hereof, Financial Security shall be entitled to exercise any and all legal and equitable remedies available to it, including those provided under the Ordinance other than (i) acceleration of the maturity of the Bonds or (ii) remedies which would adversely affect owners of the Bonds. (c) This Ordinance shall not be discharged until all Policy Costs owing to Financial Security shall have been paid in full. The City's obligation to pay such amounts shall expressly survive payment in full of the Bonds. (d) Financial Security shall not have the right to demand payment of Policy Costs out offunds of the City raised or to be raised by taxation. ARTICLE XV REDEMPTION OF REFUNDED BONDS; DISPOSITION OF RESERVE FUND Section 15.01. Redemption of Refunded Bonds. The Refunded Bonds are hereby called for redemption prior to maturity as set forth on Schedule I, at a redemption price equal to the principal amount thereof so redeemed plus accrued interest to the date of redemption. Interest on the Refunded Bonds shall cease to accrue on the date of redemption thereof. Section 15.02. Notices of Redemption. Notices of redemption of the Refunded Bonds shall be given in the manner and within the times required by the ordinances authorizing the issuance thereof. The City Clerk is hereby authorized and directed to take all such actions as may be necessary to accomplish the timely giving of such notices of redemption. R:ISan MarcoslEUS Rfdg021DocslOrdinancelFinal.wpd 43