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on the amount of principal or interest payable by the City on any bond or the subrogation or <br /> assignment rights of the Insurer. <br /> Payments with respect_to claims for interest on and principal of bonds disbursed by <br /> the Trustee from proceeds of the Insurance Policy shall not be considered to discharge the <br /> obligation of the City with respect to such bonds, and the Insurer shall become the owner of such <br /> unpaid bonds and claims for the interest in accordance with the tenor of the assignment made to it <br /> under the provisions of the preceding paragraphs or otherwise. This Ordinance shall not be <br /> discharged or terminated unless all amounts due or to become due to the Insurer have been paid in <br /> full or duly provided for. <br /> Irrespective of whether any such assignment is executed and delivered,the City and <br /> the Trustee agree for the benefit of the Insurer that: <br /> (i) To the extent the Insurer makes payments directly or indirectly (e.g., by <br /> paying through the Trustee), on account of principal of or interest on the bonds,the Insurer will be <br /> subrogated to the rights of such holders to receive the amount of such principal and interest from <br /> the City with interest on bond principal (but not bond interest), as provided and solely from the, <br /> sources stated in this Ordinance and the bonds; and <br /> (ii) The Insurer will be paid the amount of such principal and interest, with <br /> interest on bond principal (but not bond interest), as provided herein and in the bonds, but only <br /> from the sources and in the manner provided herein and therein for the payment of principal of <br /> and interest on the bonds to holders, and the Insurer will be treated as the owner of such rights to <br /> the amount of such principal and interest. <br /> (c) The City agrees unconditionally that it will pay or reimburse the Insurer on <br /> demand any and all reasonable charges, fees, costs, losses, liabilities and expenses that the Insurer <br /> may pay or incur,including,but not limited to,fees and expenses of the Insurer's agents,attorneys, <br /> accountants, consultants, appraisers and auditors and reasonable costs of investigations, in <br /> connection with the administration(including waivers and consents,if any),enforcement,defense, <br /> exercise or preservation of any rights and remedies in respect of this Ordinance ("Administrative <br /> Costs"). For purposes of the foregoing, costs and expenses shall include a reasonable allocation <br /> of compensation and overhead attributable to the time of employees of the Insurer spent in <br /> connection with the actions described in the preceding sentence. <br /> Notwithstanding anything herein to the contrary, the City agrees to pay to the <br /> Insurer (i) a sum equal to the total of all amounts paid by the Insurer under the Insurance Policy <br /> and (ii) interest on bond principal (but not bond interest) from the date paid by the Insurer under <br /> the Insurance-Policy until payment thereof in full by the City, payable to the Insurer at the stated <br /> interest rate for each such bond (collectively, the 'Bond Insurer Reimbursement Amounts") <br /> compounded semi-annually. The City hereby covenants and agrees that the Bond Insurer <br /> Reimbursement Amounts are payable from and secured by a lien on and pledge of the Pledged <br /> Revenues and other collateral pledged to the bonds on a parity with debt service due on the bonds. <br /> 31 <br />