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SECTION 22. Payments Under the Policy. In the event that, on the payment date on the <br /> Bonds, the City or the Bond Registrar determines that there will not be sufficient moneys <br /> available in the City's Debt Service Fund to pay all principal of and interest on the Bonds due on <br /> such payment date, the City or the Bond Registrar shall immediately notify the Insurer or its <br /> designee on the same day by telephone or telegraph, confirmed in writing by registered or <br /> certified mail, of the amount of the deficiency. <br /> If the deficiency is made up in whole or in part, the Bond Registrar shall so notify the <br /> Insurer or its designee. <br /> In addition, if the Bond Registrar has notice that any Bondholder has been required to <br /> disgorge payments of principal or interest on the Bonds to a trustee in bankruptcy or creditors or <br /> others pursuant to a final judgment by a court of competent jurisdiction that such payment <br /> constitutes a voidable preference to such Bondholder within the meaning of any applicable <br /> bankruptcy laws, then the Bond Registrar shall notify the Insurer or its designee of such fact by <br /> telephone or telegraphic notice, confirmed in writing by registered or certified mail. <br /> The Bond Registrar is hereby irrevocably designated, appointed, directed and authorized <br /> to act as attorney-in-fact for Bondholders as follows: <br /> 1. If and to the extent there is a deficiency in amounts required to pay interest <br /> on the Bonds, the Bond Registrar shall (a) execute and deliver to State Street Bank and <br /> Trust Company, N.A., or its successors under the Policy(the "Insurance Paying Agent"), <br /> in form satisfactory to the Insurance Paying Agent, an instrument appointing the Insurer as <br /> agent for such Bondholders in any legal proceeding related to the payment of such interest <br /> and an assignment to the Insurer of the claims for interest to which such deficiency relates <br /> and which are paid by the Insurer, (b) receive as designee of the respective Bondholders <br /> (and not as Bond Registrar) in accordance with the tenor of the Policy payment from the <br /> Insurance Paying Agent with respect to the claims for interest so assigned, and (c) <br /> disburse the same to such respective Bondholders; and <br /> -28- J:TvvwwHoMscxDOC <br />