Ord 1993-037 - Laserfiche WebLink

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I;;..Q8P BOND INSURANCE The information contained or retèn-ed to in this Offidal Statement relating to the Insurer and the Insurance Policy has been provided by the Insurer. Such information has not been independently verified by the City or the Purchaser and is not guaranteed as to completeness or accuracy by the City or the Purchaser and is not to be construed as a representation of the City or the Purchaser. Reference is made to the specimen of the Insurer's policy attached hereto. The Insurer's policy unconditionally and irrevocably guarantees the full and complete payment required to be made by or on behalf of the Issuer to the Paying Agent or its successor of an amount equal to (i) the principal of (either at the stated maturity or by an advancement of maturity pursuant to a mandatory sinking fund payment) and interest on, the Bonds as such payments shall become due but shall not be so paid (except that in the event of any acceleration of the due date of such principal by reason of mandatory or optional redemption or acceleration resulting from dctàult or otherwise, other than any advancement of maturity pursuant to a mandatory sinking fund payment, the payments guaranteed by the Insurer's policy shall be made in such amounts and at such times as such payments of principal would have been due had there not been any such accereration); and (ü) the reimbursement of any such payment which is subsequently recovered from any owner of the Bonds pursuant to a final judgment by a court of competent jurisdiction that such payment constitutes an avoidable preíèrence to such owner within the mearung of any applicable bankruptcy law (a "Preference"). The Insurer's policy does not insure against loss of any prepayment prertúum which may at any time be payable with respect to any Bond, The Insurer's policy does not, under any circumstance, insure against loss relating to: (i) optional or mandatory redemption (other than mandatory sinking fund red.::mptions); (ü) any payments to be made on an accelerated basis; (iü) payments of the purchase price of Bonds upon t.::nder by an owner thereof; or (iv) any Preference relating to (i) through (ill) above, The Insurer's policy also does not insure against nonpayment of principal of or interest on the Bonds n::sulting from the insolvency, neglig.::nce or any otha act or ortússion of th.:: Paying Ag.::nt or any other paying agent for th.:: Bonds. Upon receipt of telephoruc or telegraphic notice, suc:h notice subsequ.::ntly confirmed in writing by regist.::red or c.::rtifï.::d mail, or upon recdpt of writt.::n notice by registered or certifi.::d mail, by the Insurer from the Paying Agent or any owner of a Bond the payment ,)f an insured am\)unt t,)r which is then du.::, that such requir.::d payment has nut heen made, the Insurer on the due date of such payment or within one business day after receipt of notice of such nonpayment, whichever is later. will mak.:: a d.::posit of funds, in an account with Citibank, N .A., in N.::w York, New York, Dr its successor, suftic:ient for the payment of any such insured amounts which ar.:: th.::n due. Upon presentment and sun-ender of such Bonds or presentment ()f such other proof of own.::rship of the Bonds, tog.::ther with any appropriatè instruments of assignment to evidence the assignm.::nt of the insured amounts due on the Bonds as are paid by the Insur.::r, and appropriate instruments to dIed the appointment of the Insurer as agent for such owners of the Bonds in any legal proceeding related to paym.::nt of insured amounts on tht:: Bonds, such instruments bdng in a form satisfactOry to Citibank, N .A., Citibank, N ,A. shall disburse to su~h owners or the Paying Agent payment of th.:: insured amounts due on such Bonds, less any amount held by the Paying Agent for the payment of such insured amounts and legally available th.::refor. The Insurer is the principal operating subsidiary of MBIA Inc., a New York Stock Exchange listed company. MBIA 1m.:. is not obligated to pay the debts of or claims against the Insurer. The Insurer is a limited liahility corporation rather than a several liability association. The Insurer is domicil.::d in th.:: State of New York and licensed to do business in all 50 states, the Distrid of Columbia and the Commonwealth of Puerto Rico. As of December 31, 1991, the Insurer had adrtútted ass.::ts of S2.0 billion (audited), total liabilities of $1..+ billion (audited), and total capital and surplus of $647 rtúllil)n (audikd) pr.::pared in accordance with statutory accounting practices prescribed or pernútted by insurance regulatory authorities. As of Dec<::mb.::r 31, 1992, tht:: Insurer had admitted assets of $2.6 billion (audit.::d), total liabilities of $1.7 billion (audited), and total capital and surplus of $896 rtúllion (audited) determint::d in accordance with statutory accounting practices prescribed or p.::r~tted by insurance regulatory auth()rities. ClJpies \)1' th<:: Insuft:r's yt::ar end financial statements prepared in accordance with statutory accounting practices are available from the Insur<::r. The address of tht:: Insur.::r is 113 King Street, Armonk, New York 10504. Moody's Investors Service rates all bond issues insured by the Insurer "Aaa" and short term loans "~llG I." both dt::signated to be of the highe!'t quality. Standard & Poor's Corporation rates all new issu.::s insured by the Insurer "AAA" Prime Grade. The ~10ody's Investors Service rating of the Insurer should bt:: evaluated independ.::ntly of tht:: Standard & Poor's Corporation rating of the Insur.::r. No application has bet::n made to any other rating agt::ncy in order to obtain additional ratings on the Bonds. The ratings refle<.:t the respt::ctive rating agency's CUITent assessmt::nt of the creditworthin.::ss of tht:: Insur.::r and its ability to pay claims on its policies of insurance. Any further explanation as to the significance of th.:: above ratings may b.:: ohtained only from the applicable rating agency, The:: above ratings are not recommendations to buy, sell or hold the Bonds, and such ratings may be subject to revision or withdrawal at any time by tht:: rating agencies, Any downward revision or withdrawal of either or both ratings may have an adverse eftèct on the:: market price of the Bonds. DISCLOSURE OF GUARANTY FUND NONPARTICIPATION: In the evt::nt the Insurer is unabk to fulfill its contractual obligation under this policy or contract or application or certificate or evidence of coverage, the policyholder or certificateholder is not protected by an insurance:: guaranty fund or other solvency protection an-angem.::nt. 12