Ordinance 2607-02 - Laserfiche WebLink

(9) The Insurer shall be a beneficiary of this ordinance, entitled to the benefits and to seek to require performance by the City of its covenants hereunder. (c) Provisions Relating to the Reserve Surety Bond. The following provisions shall apply so long as the Reserve Surety Bond is in effect. (1) The City shall repay any draws under the Reserve Surety Bond and pay all related reasonable expenses incurred by the Insurer. Interest shall accrue and be payable on such draws and expenses from the date of payment by the Insurer at the Late Payment Rate. "Late Payment Rate" means the lesser of (a)the greater of (i) the per annum rate of interest, publicly announced from time to time by The JPMorgan Chase Bank at its principal office in the City of New York, as its prime or base lending rate ("Prime Rate") (any change in such Prime Rate to be effective on the date such change is announced by The JPMorgan Chase Bank) plus three percent, and (ii)the then applicable highest rate of interest on the Bonds or (b)the maximum rate permissible under applicable usury or similar laws limiting interest rates. The Late Payment Rate shall be computed on the basis of the actual number of days elapsed over a year of 360 days. In the event The JPMorgan Chase Bank ceases to announce its Prime Rate publicly, Prime Rate shall be the publicly announced prime or base lending rate of such national bank as the Insurer shall specify. Repayment of draws and payment of expenses and accrued interest thereon at the Late Payment Rate (collectively, "Policy Costs") shall commence in the first month following each draw, and each such monthly payment shall be in an amount at least equal to 1/12 of the aggregate of Policy Costs related to such draw. Amounts in respect of Policy Costs paid to the Insurer 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 47-- P:\CMW\CMW5BE 02/05/21