Ordinance 2607-02 - Laserfiche WebLink

made to the Insurer on account of principal due, the coverage under the Reserve Surety Bond will be increased by a like amount, subject to the terms of the Reserve Surety Bond. Drawings upon the Reserve Surety Bond or any other credit facility credited to the Reserve Account in lieu of cash("Credit Facility") shall be made as described in Sections 8(c)(1) and (3) of this ordinance. Payment of any Policy Costs shall be made prior to replenishment of withdrawals from a Reserve Account. Draws on all Credit Facilities (including the Reserve Surety Bond) 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 applicable Reserve Account. Payment of Policy Costs and reimbursement amounts with respect to other credit facilities shall be made on a pro-rata basis prior to replenishment of any cash drawn from a Reserve Account. (2) If the City shall fail to pay any Policy Costs in accordance with the requirements of Section 19(c)(1) hereof, the Insurer shall be entitled to exercise any and all legal and equitable remedies available to it other than remedies which would adversely affect owners of the Bonds. (3) This ordinance shall not be discharged until all Policy Costs owing to the Insurer shall have been paid in full. The City's obligation to pay such amounts shall expressly survive payment in full of the Bonds. (4) The Bond Registrar shall ascertain the necessity for a claim upon the Reserve Surety Bond and shall provide notice to the Insurer in accordance with the terms of the Reserve Surety Bond at least five business days prior to each date upon which interest or principal is due on the Bonds. -48- P'\CMW\CMW5BE 02/05/21