Ordinance 1994-1170 - Laserfiche WebLink

Home Browse Search

the jurisdiction of the Securities Investors Protection Corporation (SIPC); or (4) any other entity rated "A" or better and acceptable to the Bond Insurer, provided that: a. The market value of the collateral is maintained at levels and upon such conditions as would be acceptable to S&P and Moody's in an "A" rated structured financing (with a market value approach); b. Failure to maintain the requisite collateral percentage will require the City to liquidate the collateral. c. The City or a third party acting solely as agent therefor (the "Holder of the Collateral") has possession of the collateral or the collateral has been transferred to the Holder of the Collateral in accordance with applicable state and federal laws (other than by means of entries on the transferor's books); d. The repurchase agreement shall state and an opinion of counsel shall be rendered that the Holder of the Collateral has a perfected first priority security interest in the collateral, any substituted collateral and all proceeds thereof (in the case of bearer securities, this means the Holder of the Collateral is in possession); e. The transferor represents that the collateral is free and clear of any third-party liens or claims; f. The repurchase agreement is a "repurchase agreement" as defined in the United States Bankruptcy Code and, if the provider is a domestic bank, a "qualified financial contract" as defined in the Financial Institutions Reform, Recovery and Enforcement Act of 1989 ("FIRREA") and such bank is subject to FIRREA; g. There is or will be a written agreement governing every repurchase transaction; h. The City represents that it has no knowledge of any fraud involved in the repurchase transaction; and 1. The City receives the opinion of counsel (which opinion shall be addressed to the City and the Bond Insurer) that such repurchase agreement -7-