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determines that there will be insufficient funds in such Funds or Accounts, the Paying Agent, if <br />any, shall so notify Ambac Assurance. Such noticeshall specify the amount of the anticipated <br />deficiency, the Bonds to which such deficiency is applicable .and whether such Bonds will be <br />deficient as to principal or-interest, or both. If the Paying Agent, if any, has not so notified <br />Ambac Assurance at least one (1) day prior to an Interest Payment Date, Ambac Assurance will <br />make paymehts of principal or interest due on the Bonds on or before the first (1 st) day next <br />following the date on which Amba9. Assurance shall have received notice of nonpayment from <br />the Paying Agent, if any. <br /> <br />B. The Paying Agent, if any, shall, after giving notice to Ambac Assurance as provided in A. <br />above, make available to Ambac Assurance and, at Ambac Assurance's direction, to the United <br />States Trust Company of New York, as insurance trustee for Ambac Assurance or any successor · <br />insurance trustee (the "Insurance Trustee"), the registration books of the City maintained by <br />the Paying Agent, if any, and all records relating to the Funds and Accounts maintained under the <br />Authorizing Ordinance. <br /> <br />C. The Paying Agent, if any, shall provide Ambac Assurance and the Insurance Trustee with <br />a list of registered owners of Bonds entitled to receive principal or interest payments from <br />Ambac Assurance under the terms of the Municipal Bond Insurance Policy, and shall make <br />arrangements with the Insurance Trustee (i) to mail checks or drafts to the registered owners of <br />Bonds entitled to receive full or partial interest payments from Ambac Assurance and (ii) to pay <br />principal upon Bonds surrendered to the Insurance Trustee by the registered owners of Bonds <br />entitled to receive full or partial principal payments from Ambac Assurance. <br /> <br />· D. The Paying Agent, if any, shall, at the time it provides notice to Ambac Assurance <br />pursuant to (A) above, notify registered owners of Bonds entitled to receive the payment of <br />principal or interest thereon from Ambac Assurance (i) as to the fact of such entitlement, (ii) that <br />Ambac Assurance will remit to them all or a part of the interest payments next coming due upon <br />proof of Bondholder entitlement to interest payments and delivery to the Insurance Trustee, in · <br />form satisfactory to the Insurance .Trustee, of an appropriate assignment of the registered owner's <br />right to payment, (iii) that should they be entitled to receive full payment of principal from <br />Ambac Assurance, they must surrender their Bonds (along with an appropriate instrument of <br />assignment in form satisfactory to the Insurance Trustee to permit ownership of such Bonds to be <br />. registered in the name of Ambac Assurance) for payment to the Insurance Trustee, and not the. <br />Paying Agent, if any, and (iv) that.should they be entitled to receive partial payment of principal <br />from Ambac Assurance, they must surrender.their Bonds for payment thereon first to the Paying <br />Agent, if any, who shall note on such Bonds the portion of the principal paid by the Paying <br />Agent, if any, and then, along with an appropriate instrument of assignment in form satisfactory <br />to the Insurance Trustee, to the Insurance Trustee, which will then. pay the unpaid portion of <br />principal. <br /> <br />E. In the event that the Paying Agent, if any, 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 /> <br /> <br />