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Ordinance 1988-94
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Ordinance 1988-94
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Ordinances
Ordinance Number
1988-94
Date
1/19/1994
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• <br /> (e) In the event that the Bond Registrar has notice that any payment of principal of or <br /> interest on a Bond which has become due for payment and which is made to a bondholder by or <br /> on behalf of the City has been deemed a preferential transfer and theretofore recovered from its <br /> registered owner pursuant to the United States Bankruptcy Code by a trustee in bankruptcy in <br /> accordance with the final, nonappealable order of a court having competent jurisdiction, the Bond <br /> Registrar shall, at the time AMBAC Indemnity is notified pursuant to (a) above, notify all <br /> registered owners that in the event that any registered owner's payment is so recovered, such <br /> registered owner will be entitled to payment from AMBAC Indemnity to the extent of such <br /> recovery if sufficient funds are not otherwise available, and the Bond Registrar shall furnish to <br /> AMBAC Indemnity its records evidencing the payments of principal of and interest on the Bonds <br /> which have been made by the Bond Registrar and subsequently recovered from registered owners <br /> and the dates on which such payments were made. <br /> (f) In addition to those rights granted AMBAC Indemnity under this ordinance, <br /> AMBAC Indemnity shall, to the extent it makes payment of principal of or interest on Bonds, <br /> become subrogated to the rights of the recipients of such payments in accordance with the terms <br /> of the Municipal Bond Insurance Policy, and to evidence such subrogation (i) in the case of <br /> subrogation as to claims for past due interest, the Bond Registrar shall note AMBAC Indemnity's <br /> rights as subrogee on the registration books of the City maintained by the Bond Registrar upon <br /> receipt from AMBAC Indemnity of proof of the payment of interest thereon to the registered <br /> owners of the Bonds, and (ii) in the case of subrogation as to claims for past due principal, the <br /> Bond Registrar shall note AMBAC Indemnity's rights as subrogee on the registration books of the <br /> City maintained by the Bond Registrar upon surrender of the Bonds by the registered owners <br /> thereof together with proof of the payment of principal thereof. <br /> SECTION 22. General Authorization. The Mayor, the Finance Director, and the Clerk of <br /> the City and each of the other appropriate officers, agents and representatives of the City are each <br /> hereby authorized and directed to take such steps, to do such other acts and things, and to <br /> execute such letters, certificates, agreements, papers, financing statements, assignments or <br /> -24- DOTO6L.DOC 94/01/19 <br />
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