Indenture of Trust (1996) - Laserfiche WebLink

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STATEMENT OF INSURANCE The MBIA Insurance Corporation(the "Insurer") has issued a policy containing the following provisions, such policy being on file at U.S.Trust Company of California,N.A.,Los Angeles,California. The Insurer,in consideration of the payment of the premium and subject to the terms of this policy,hereby unconditionally and irrevocably guarantees to any owner, as hereinafter defined, of the following described obligations,the full and complete payment required to be made by or on behalf of the Countywide Public Financing Authority (the "Issuer") to U.S. Trust Company of California, N.A.,Los Angeles, California,or its successor (the "Paying Agent"),of an amount equal to(i) the principal of(either at the stated maturity or by any advancement of maturity pursuant to a mandatory sinking fund payment) and interest on, the Obligations(as that term is defined below)as such payments shall become due but shall not be so paid(except that in the event of any acceleration of the due date of such principal by reason of mandatory or optional redemption or acceleration resulting from default or otherwise,other than any advancement of maturity pursuant to a mandatory sinking fund payment, the payments guaranteed hereby shall be made in such amounts and at such times as such payments of principal would have been due had there not been any such acceleration); and(ii) the reimbursement of any such payment which is subsequently recovered from any owner pursuant to a final judgment by a court of competent jurisdiction that such payment constitutes an avoidable preference to such owner within the meaning of any applicable bankruptcy law.The amounts referred to in clauses (i) and (ii) of the preceding sentence shall be referred to herein collectively as the "Insured Amounts.""Obligations"shall mean: $27,725,000 COUNTYWIDE PUBLIC FINANCING AUTHORITY (California) 1996 Revenue Bonds Upon receipt of telephonic or telegraphic notice,such notice subsequently confirmed in writing by registered or certified mail,or upon receipt of written notice by registered or certified mail,by the Insurer from the Paying Agent or any owner of an Obligation the payment of an Insured Amount for which is then due,that such required payment has not been made,the Insurer on the due date of such payment or within one business day after receipt of notice of such nonpayment,whichever is later,will make a deposit of funds,in an account with State Street Bank and Trust Company,N.A.,in New York,New York,or its successor,sufficient for the payment of any such Insured Amounts which are then due. Upon presentment and surrender of such Obligations or presentment of such other proof of ownership of the Obligations,together with any appropriate instruments of assignment to evidence the assignment of the Insured Amounts due on the Obligations as are paid by the Insurer,and appropriate instruments to effect the appointment of the Insurer as agent for such owners of the Obligations in any legal proceeding related to payment of Insured Amounts on the Obligations, such instruments being in a form satisfactory to State Street Bank and Trust Company,N.A.,State Street Bank and Trust Company,N.A.shall disburse to such owners or the Paying Agent payment of the Insured Amounts due on such Obligations,less any amount held by the Paying Agent for the payment of such Insured Amounts and legally available therefor.This policy does not insure against loss of any prepayment premium which may at any time be payable with respect to any Obligation. As used herein,the term"owner"shall mean the registered owner of any Obligation as indicated in the books maintained by the Paying Agent,the Issuer,or any designee of the Issuer for such purpose.The term owner shall not include the Issuer or any party whose agreement with the Issuer constitutes the underlying security for the Obligations. Any service of process on the Insurer may be made to the Insurer at its offices located at 113 King Street, Armonk,New York 10504 and such service of process shall be valid and binding. This policy is non-cancelable for any reason. The premium on this policy is not refundable for any reason including the payment prior to maturity of the Obligations. In the event the Insurer were to become insolvent,any claims arising under a policy of financial guaranty insurance are excluded from coverage by the California Insurance Guaranty Association, established pursuant to Article 14.2(commencing with Section 1063)of Chapter 1 of Part 2 of Division 1 of the California Insurance Code. MBIA INSURANCE CORPORATION • • Exhibit A Page 5