Ord 2007-036 - Laserfiche WebLink

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appropriate assignment of the registered owner's right to payment, (iii) that should they be entitled to receive full payment of principal from Ambac Assurance, they must surrender their Bonds (along with an appropriate instrument of assignment m form satisfactory to the Insurance Trustee to permit ownership of such Bonds to be registered m the name of Ambac Assurance) for payment to the Insurance Trustee, and not the Paying Agent, and (iv) that should they be entitled to receive partial payment of principal from Ambac Assurance, they must surrender their Bonds for payment thereon first to the Paying Agent who shall note on such Bonds the portion of the principal paid by the Paying Agent, if any, and then, along with an appropriate instrument of assignment m form satisfactory to the Insurance Trustee, to the Insurance Trustee, which will then pay the unpaid portion of principal, (e) m the event that the Paying Agent has notice that any payment of principal of or interest on a Bond which has become due for payment and which is made to a holder by or on behalf of the Crty has been deemed a preferential transfer and theretofore recovered from its registered owner pursuant to the United States Bankruptcy Code by a trustee m bankruptcy m accordance with the final, nonappealable order of a court having competent~unsdiction, the Paying Agent shall, at the time Ambac Assurance is notified pursuant to (a) above, notify all registered owners that m the event that any registered owner's payment is so recovered, such registered owner will be entitled to payment from Ambac Assurance to the extent of such recovery if sufficient funds are not otherwise available, and the Paying Agent shall furnish to Ambac Assurance its records evidencing the payments of principal of and interest on the Bonds which have been made by the Paying Agent and subsequently recovered from registered owners and the dates on which such payments were made, and (f) m addition to those rights granted Ambac Assurance under the Ordinance, Ambac Assurance shall, to the extent it makes payment of principal of or interest on Bonds, become subrogated to the rights of the recipients of such payments m accordance with the terms of the Financial Guaranty Insurance Policy, and to evidence such subrogation (i) m the case of subrogation as to claims for past due interest, the Paying Agent shall note Ambac Assurance's rights as subrogee on the registration books of the Crty maintained by the Paying Agent upon receipt from Ambac Assurance of proof of the payment of interest thereon to the registered owners of the Bonds, and (n) m the case of subrogation as to claims for past due principal, the Paying Agent shall note Ambac Assurance's rights as subrogee on the registration books of the City maintained by the Paying Agent upon surrender of the Bonds by the registered owners thereof together with proof of the payment of principal thereof. 2 The Crty hereby covenants and agrees that rt shall reimburse Ambac Assurance for any amounts paid under the Financial Guaranty Insurance Policy and all costs of collection thereof and enforcement of the Ordinance and any other documents executed m connection with the Ordinance, together with interest thereon, from the date paid or incurred by Ambac Assurance until payment thereof m full by the Crty, payable at the Insurer Payment Rate (as hereinafter defined), including without limitation (to the extent permitted by apphcable law) interest on claims paid by Ambac Assurance m respect of interest on the Bonds Such payment obligation shall be payable on demand and on a parity with, and from the same sources and secured by the same security as, regularly scheduled principal and interest payments m respect of the Bonds For purposes of the foregoing, "Insurer Payment Rate" shall mean the lesser of (a) the maximum rate permissible under apphcable usury or similar laws limiting interest rates and (b) the greater of (i) the then apphcable highest rate of interest on the Bonds and (u) the per annum rate of interest, publicly announced from time to time by JPMorgan Chase Bank, N.A. ("Chase") at its principal office m the Crty of New York, as its prime or base lending rate ("Prime Rate") (any change m such Prime Rate to be effective on the date such change is announced by Chase) plus 3 percent. The Insurer Payment Rate shall be computed on the basis of the actual number of days elapsed over a year of 360 days In the event that Chase ceases to announce its Prime Rate San Marcos GO 2007 Ordinance 34