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151 <br />TUESDAY, JUNE 8, 1999 <br /> long as compliance is begun within such period and diligently pursued, but only if such extension <br /> would not materially adversely affect the interests of any registered owner of the Bonds. <br /> <br />Section 6. Defeasance <br /> <br />A, <br /> <br />Notwithstanding anything herein to the contrary, in the event that the principal and/or interest due <br />on the Bonds shall be paid by Ambac Assurance Corporation pursuant to the Municipal Bond <br />Insurance Policy, the Bonds shall remain Outstanding for all purposes, not be defeased or <br />otherwise satisfied and not be considered paid by the City, _and all covenants, agreements and other <br />obligations of the City to the registered owners shall continue to exist and shall run to the benefit of <br />Ambac Assurance, and Ambac Assurance shall be subrogated to the rights of such registered <br />owners. <br /> <br />Section 7. Payment Procedures Pursuant to the Municipal Bond Insurance Policv <br /> <br /> As long as the bond insurance shall be in full force and effect, the City and any Paying Agent <br />agree to comply with the following provisions: <br /> <br />At least one (1) day prior to all Interest Payment Dates the Paying Agent, if any, will determine <br />whether there will be sufficient funds in the Funds and Accounts to pay the principal of or interest <br />on the Bonds on such Interest Payment Date. If the Paying Agent, if any, determines that there will <br />be insufficient funds in such Funds or Accounts, the Paying Agent, if any, shall so notify Ambac <br />Assurance. Such notice shall specify the amount of the anticipated deficiency, the Bonds to which <br />such deficiency is applicable and whether such Bonds will be deficient as to principal or interest, or <br />both. If the Paying Agent, if any, has not so notified Ambac Assurance at least one (1) day prior to <br />an Interest Payment Date, Ambac Assurance will make payments of principal or interest due on the <br />Bonds on or before the first (lst) day next following the date on which Ambac Assurance shall <br />have received notice of nonpayment from the Paying Agent, if any. <br /> <br />The Paying Agent, if any, shall, after giving notice to Ambac Assurance as provided in A. above, <br />make available to Ambac Assurance and, at Ambac Assurance's direction, to the United States <br />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 the <br />Paying Agent, if any, and all records relating to the Funds and Accounts maintained under the <br />Authorizing Ordinance. <br /> <br />The Paying Agent, if any, shall provide Ambac Assurance and the Insurance Trustee with a list of <br />registered owners of Bonds entitled to receive principal or interest payments from Ambac <br />Assurance under the terms of the Municipal Bond Insurance Policy, and shall make arrangements <br />with the Insurance Trustee (i) to mail checks or drafts to the registered owners of Bonds entitled to <br />receive full or partial interest payments from Ambac Assurance and (ii) to pay principal upon <br />Bonds surrendered to the Insurance Trustee by the registered owners of Bonds entitled to receive <br />full or partial principal payments from Ambac Assurance. <br /> <br />The Paying Agent, if any, shall, at the time it provides notice to Ambac Assurance pursuant to (A) <br />above, notify registered owners of Bonds entitled to receive the payment of principal or interest <br />thereon from Ambac Assurance (i) as to the fact of such entitlement, (ii) that Ambac Assurance <br />will remit to them all or a part'of the interest payments next coming due upon proof of Bondholder <br />entitlement to interest payments and delivery to the Insurance Trustee, in form satisfactory to the <br /> <br />15 <br /> <br /> <br />