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Tab_10DU Dil FINANCIAL GUARANTY AGREEMENT made as of March 1 2016, by and between Alaska Municipal Bond Bank (the 'Issuer" or "Bond Bank") and National Public Finance Guarantee Corporation (the "Insurer"), organized under the laws of the state of New York, WITNES SETH: WHEREAS, the Issuer has or will issue the Obligations; and WHEREAS, pursuant to the terms of the Document the Issuer agrees to make certain payments on the Obligations; and WHEREAS, the Insurer will issue its Surety Bond, substantially in the form set forth in Annex A to this Agreement, guaranteeing certain payments by the Issuer subject to the terms mid limitations of the Surety Bond; and WHEREAS, to induce the Insurer to issue the Surety Bond, the Issuer has agreed to pay the premium for the Surety Bond and to reimburse the Insurer for all payments made by the Insurer, under the Surety Bond, alias more fully set forth in this Agreement; and WHEREAS, the Issuer understands that the Insurer expressly requires the delivery of this Agreement as part of the consideration for the execution by the Insurer of the Surety Bond; and NOW, THEREFORE, in consideration of the premises and of the agreements herein contained and of the execution of the Surety Bond, the Issuer and the Insurer agree as follows: ARTICLE I DEFINITIONS; SURETY BOND Section 101 Definitions, The terms which are capitalized herein shall have the meanings specified in Annex B hereto. Section 1.02, Surety Bond, (a) The Insurer will issue the Surety Bond in accordance with and subject to the terms and conditions of the Commitment, (b) The maximum liability of the Insurer under the Surety Bond and the coverage and term thereof shall be subject to and limited by the terms and conditions of the Surety Bolld. Section 1.03, Premium. In consideration of the Insurer agreeing to issue the Surety Bond hereunder, the Issuer hereby agrees to pay or cause to be paid the Premium set forth in Annex B hereto, The Premium on the Surety Bond is not refundable for any reason. Section 1.04. Certain Other Expenses, The Issuer will pay all reasonable fees and disbursements of the Insurer's special counsel related to any modification of this Agreement or the Surely Bond. ARTICLE II REIMBURSEMENT OBLIGATIONS OF ISSUER AND SECURITY THEREFOR Section 2.01. Reimbursement for Payments Under the Surty.Bond-anExpenses.. (a) The Issuer will reimburse the Insurer, within the Reimbursement Period, without demand or notice by the Insurer to the Issuer or any other person, to the extent of each Surety Bond Payment with interest on each Surety Bond Payment from and including the date made to the date of the reimbursement at the lesser of the Reimbursement Rate or the maximum rate of interest permitted by then applicable law, (b) The Issuer also agrees to reimburse the Insurer immediately and unconditionally upon demand, to the extent pemiitted by state law, for all reasonable expenses incurred by the Insurer in connection with the Surety Bond and the enforcement by the .lnsurcr of the Issuer's obligations under this Agreement, the Document, and any other document executed in connection with the issuance of the Obligations, together with interest on all such expenses from and including the date incurred to the date of payment at the rate set forth in subsection (a) of this Section 2.01. (c) The Issuer agrees that all amounts owing to the insurer pursuant to Section 1.03 hereof and this Section 201 must be paid in full prior to any optional redemption or refunding of the Obligations, (d) All payments made to the insurer under this Agreement shall be paid in lawful currency of the United States in immediately available funds at the Insurers oilmen at I Manhattanviflo Road, Suite 301, Purchase, New York 10577, Attention: Portfolio Surveillance Group, or at such other place as shall be designated by the Insurer, Section 2,02. Allocation of Payments, The Insurer and the Issuer hereby agree that each payment received by the Insurer from or on behalf of the Issuer as a reimbursement to thO insurer as required by Section 2.01 hereof shall he applied by the Insurer first, toward payment of any unpaid premium; second, toward repayment of the aggregate Surety Bond Payments made by the Insurer and not yet repaid, payment of which will reinstate all or a portion of the Surety Bond Coverage to the extent of such repayment (but not to exceed the Surety Bond Limit); and third, upon frill reinstatement of the Surety Bond Coverage to the Surety BOnd Limit, toward other amounts, including, without limitation, any interest payable with respect to any Surety Bond Payments then due to the Itisurer. Section 2,03, Security for Payments; Instruments of Further Assurance. To the extent, but only to the extent, that the Document, or any related indenture, trust agreement, ordinance, resolution, mortgage, security agreement or similar instrument, if any, pledges to the Owners or any trustee therefor, or grants a security interest or lien in or on any collateral, property, revenue or other payments ('Collateral and Revenues) in order to secure the Obligations or provide a source of payment for the Obligations, the Issuer hereby grants to the Insurer a security interest in or lien on, as the case may be, and pledges to the Insurer all. such Collateral and Revenues as security for payment of all amounts due hereunder and under the Document or any other document executed in connection with the issuance of the Obligations, which security interest, lien and/or pledge created or granted under this Section 2.03 shall be subordinate only to the interests of the Owners and any trustee therefor in such Collateral and Revenues, except as otherwise provided. The Issuer agrees that it will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, any and all financing statements, if applicable, and all other further instruments as may be required by law or as shall reasonably be requested by the Insurer for the perfection of the security interest, if any, granted under this Section 2.03 and for the preservation and protection of all rights of the Insurer under this Section 2.03. Section 2,04. Unconditional Obligatio. The obligations hereunder are absolute and unconditional and will be paid or perftinned strictly in accordance with this Agreement, subject to the limitations of the Document, irrespective of (a) any lack of validity or enforceability of, or any amendment or other modification of, or waiver with respect to the Obligations, the Document or any other document executed in connection with the issuance of the Obligations; or (b) any exchange, release or nonperfection of any security interest in property securing the Obligations or this Agreement or any obligations hereunder; or (c) any circumstances that might otherwise constitute a defense available to, or discharged, the Issuer with respect to the Obligations, the Document or any other document executed in connection with the issuance of the Obligations; or (d) whether or not such obligations are contingent or matured, disputed or Ondisputed, liquidated or unliquidated. Section 2,05,Insurer's Rights,, The Issuer shall repay the insurer to the extent of payments made and expenses incurred by the Insurer in connection with the Obligations and this Agreement. The obligation of the issuer to repay such amounts shall be subordinate only to the rights of the Owners to receive regularly scheduled principal and interest on the Obligations. Section 206. On-Going information Obligations of Issuer. The Issuer will make available to the Insurer, at reasonable times and upon reasonable notice, all records relative to 2005 pooled loan program. ARTICLE III AMENDMENTS TO DOCUMENT So long as this Agreement is in effect, the Issuer agrees that with respect to any amendments and modifications to the Document or any other action for which the consent of bondholders is required, the Issuer shall also be required to obtain the consent of National. ARTICLE IV EVENTS OF DEFAULT; REMEDIES Section 4.01 Events ofDefault. The following events shall constitute Events ofDethult hereunder; (a) The Issuer shall fail to pay to the Insurer when due any amount payable under Sections 1.03; or (b) The Issuer shall fail to pay to the Insurer any amount payable under Sections 1.04 and 2.01 hereof and such failure shall have continued for a period in excess of the Reimbursement Period; or (c) Any material representation or warranty made by the Issuer under the Document or hereunder or any statement in the application for the Surety Bond or any report, certificate, financial statement, document or other instrument provided in connection with the Commitment, the Surety Bond, the Obligations, or herewith shall have been materially false at the time when made; or (d) Except as otherwise provided in this Section 4.01, the Issuer shall fail to perform any of its other obligations under the Document, or any other document executed in connection with the issuance of the Obligations, or hereunder, provided that such failure continues for more than 30 days aflerreceiptby the issuer of written notice of such failure to perform; or (e) The Issuer shall (i) voluntarily commence any proceeding or file any petition seeking relief under the United States Bankruptcy Code or any other Federal, state or foreign bankruptcy, insolvency or similar laws (ii) consent to the institution of, or fail to controvert in a timely and appropriate manner, any such proceeding or the filing of any such petition, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator or similar official for such party or for a substantial part of its property, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors, (vi) become unable, admit in writing its inability or fail generally to pay its debts as they become due or (vii) take action for the purpose of effecting any of the foregoing; or (f) An involuntary proceeding shall be commenced or an involuntary petition shall be filed in a court of competent jurisdiction seeking (1) relief in respect of the Issuer, or of a substantial part of its property, under the United States Bankruptcy Code or any other Federal, state or foreign bankruptcy, insolvency or similar law or (ii) the appointment of a receiver, trustee, custodian, sequestrator or similar official for the Issuer or for a substantial part of its property; and such proceeding or petition shall continue undismissed for 60 days or an order or decree approving or ordering any of the foregoing shall continue unstayed and in effect for 30 days, Section 4,02, Remedies. If an Event of Default shall occur and be continuing, then the Insurer may Iakb whutuver action at law or inquiIy utay appear necessary or desirable to collect the amounts then due and :thereafter Io.I,ecomtic.lue indër 1hiAgrceaieit:or to enforce perftnmance of any obligation of the Issuer to the insurer under the Document or any related instrument, and any obligation, agreement or covenant of the Issuer under this Agreement; provided, however, that the Insurer may not take any action to direct or require acceleration or other early redemption of the Obligations or adversely affect the rights of the Owners, In addition, if an Event of Default shall occur due to the failure to pay to the insurer the amounts due under Section 103 hereof; the Insurer shall have the tight to cancel the Surety Bond in accordance with its terms. All tights and remedies of the Insurer under this Section 4,02 are cumulative and the exercise of any one remedy does not preclude the exercise of one or more of the other available remedies, ARTICLE V SETTLEMENT The insurer shall, in good thith, decide and determine the validity of a claim for a Surety Bond Payment. Notwithstanding the foregoing, the insurer shall unconditionally and irrevocably cause payment of the principal of and interest on the Obligations upon the later of (i) three (3) days after receipt by the Insurer of a demand for payment, duly executed by the paying, agent, or (ii) the payment date of the Obligations as specified in thedemand for payment presented by the paying agent to the Insurer. The Issuer shall reimburse the Insurer to the extent of such Surety Bond Payment as provided for in Article 11 of this Agreement. ARTICLE VI MISCELLANEOUS Section 6,01, Interest Coniputaijons. All computations of interest due hcEeunder shall be made on the basis of the actual number of days elapsed over ayear of 360 days. Section 6,02. Exercise of Rights. No failure or delay on the part of the Insurer to exercise any right, power or privilege under this Agrddment and no course of dealing between the Insurer and the Issuer or any other party shall operate as a waiver of any such right; power or privilege, nor shall any single or partial exercise of any such right, power or privilege preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein expressly provided are cumulative and not exclusive of any rights or remedies which the Insurdr would otherwise have pursuant to law or equity. No notice to or demand on any party in any case shall entitle such party to any other or further notice or demand in similar or other circumstances, or constitute a waiver of the right of the other party to any other or further action in any circumstances without notice or demand. Section 6,03. \mendment and Waiver. Any provision of this Agreement may be amended, waived, supplemented, discharged or terminated only with the prior written consent of the Issuer and the Insurer. The Issuer hereby agrees that upon the written request of the Paying Agent, the Insurer may make or consent to issue any substitute for the Surety Bond to cure any ambiguity or formal defect or omission in the Surety Bond which does not materially change the terms of the Surety Bond nor adversely affect the rights of the Owners, and this Agreement shall apply to such substituted surety bond. The Insurer agrees to deliver to the Issuer and to the company or companies, if any, rating the Obligations, a copy of such substituted surety bond. Section 6.04, Successors and Assigns; Descriptive Headings, (a) This Agreement shall bind, and the benefits thereof shall inure to, the Issuer and the Insurer and their respective successors and assigns. (b) 'llie descriptive headings of the various provisions of this Agreement are inseited for convenience of reference only and shall not be deemed to affect the meaning or construction of any o 1'the provisions hereof, Section 6,05. OtherSuretis. If the Insurer shall procure any other surety to reinsure the Surety Bond, this Agreement shall inure to the benefit of such other surety, its successors and assigns, so as to give to it a direct tight of action against the issuer to enforce this Agreement, and 'the Iosui'ei;' wherever used herein, shall he deemed to include such reinsuring surety, as its respective interests may appear. Section 6.06. Signature on Bond. The Issuer's liability shall not be affected by its thilure to sign the Surety Bond nor by any claim that other indemnity or security was to have been obtained nor by the release of any indemnity, nor the return or exchange of any collateral that may have been obtained. Section 6.07, Waiver, The Issuer waives any defdnse that this Agreement was executed subsequent to the date of the Surcty Bond, admitting and covenanting that such Surety Bond was executed pursuant to the Issuer's request and in reliance on the Issuers promise to execute this Agreement. Section 6.08, Notices, RNuests Demands. Except as otherwise expressly provided herein, all written notices, requests, demands or other communications to or upcth the respective parties hereto shall be deemed to have been given or made when actually received, or in .thb case of telex or telecopier notice sent over a telex or a telecopier machine owned or operated by. a party hereto, when sent, addressed as specified below or at such other address as any of the parties may hereafter speil4y in writing to the others: If to the Esüer: Alaska Municipal Bond Bank 333 Willoughby Avenue, 11th Floor Juneau, Alaska 99811-0405 Attention: Devon Mitchell, Executive Director If to the Paying Agent: . The Bank of New York Mellon Trust Company, NA, San Francisco, California Attention: Corporate Trust Officer If to the insurer: Natiorial Public Finance Guarantee Corporation 1 Marthattanville Road, Suite 301 Purchase, New York 10577 Attention: Pdrtfolio Suveillance Group Sec1ion6. 09,. Surviv.aJc Li e!itiQfliLlllldLiIJI0i2titi, All representations, warranties and obligations conlauiccl huotri shill sut vv the c\ccutiou nod dci iVery of this Agreement and the Surety Bond. Section 6.10. Governing Law, The rights and obligations of National Public Finance Guarantee under this Agreement shall be governed by and construed and interpreted in accordance with the laws of the State of New York, The Alaska Bond Banks authorization and obligations under this Agreement shall be governed by and construed and interpreted in accordance with the laws of the State of Alaska. Section 6.11. Counto!part This Agreement may be executed in any number of copies and by the different parties hereto on the same or separate counterparts, each of which shall be deemed to bean original instrument. Complete counterparts of this Agreement shall he lodged with the Issuer and the Insurer. Section 6.12. Severability, In the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction; such holding shall not invalidate or render unenforceable any other provision hereof. Section 6.13, Survival of Obligations, Notwithstanding anything to the contrary contained in this Agreement, the obligation of the Issuer to pay all amounts due hereunder and the rights of the Insurer to pursue all remedies shall survive the expiration, terniination or substitution of the Surety Bond and this Agreement. IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Agreement to be duly executed and delivered as of the date first above written, MAP micipa) Title: National Public Finance (iiaean1e Corpo'atlo:n. Attest SetLlry ANNEX A TTT national I public finance .±±J guarantee DEBT SERVICE RESERVE SURETY BOND National Public Finance Guarantee Corporation Purchase, New York 10577 Surety Bond No. NP 1401690 National Public Finance Guarantee Corporation (the "Insurer"), in consideration of the payment of the premium and subject to the terms of this Surety Bond, hereby unconditionally and irrevocably guarantees the full and complete payments that are to be applied to payment of principal of and interest on the Obligations as hereinafter defined) and that are required to be made by or on behalf of Alaska Municipal BOnd Bank (the"Issuer") under the General Obligation Bond Resolution, adopted by the Board of Directors of the issuer on July 13, 2005 as amended from time to time (the "2005 General Obligation Bond Resolution") and Resolution No. 20 15-05, adopted on December 15, 2015 (the 'Document') to The Bank of New York Mellon Trust Company, NA., San Francisco, California (the 'Paying Agent"), as such payments are due but shall not be so paid, in connection with the issuance by the Issuer of Alaska Municipal Bond Bank, General Obti ttgnd Refunding Bonds issued and secured pursuant to the 2005 General Obligation Bond..Resolution debt issued on a parity therewith (the "Obligations'), provided that the amount available hci cunder4 i"ic Is, nt pursuant to any one Demand for Payment (as hereinafter dened) shall not exceed the annual brti for the applicable bond year on Exhibit A attached hereto (the "Surety Bond Lmit" i), pros ided ,n the amount available at any particular time to be paid to the Paying Agent under, the terms Bond Coverage") shall be reduced and may be reinstated from time to time as set forth herein, 1. As used herein, the term "OWOø'shal1 mean the registered owner of any Obligation as indicated in the books maintained by the applicable paying agent, the Issuer or any designee of the Issuer for such purpose. The term 'Owner' shall not include the Issuer or any person or entity whose obligation or obligations by agreement constitute the underlying security or source of payment for the Obligations. 2, Upon the later of, (I) three 1) days after receipt by the Insurer of a demand for payment in the form attached hereto as Attachment 1 (the 'Demand for Payment"), duly executed by the Paying Agent; or (ii) the payment date of the Obligations as specified in the Demand for Payment presented by the Paying Agent to the Insurer, the Insurer will make a deposit of funds in an account with TJ,S Bank Trust National Association, in New York, New York, or its successor, sufficient for the payment to the Paying Agent, of amounts that are then due to the Paying Agent (as specified in the Demand for Payment) subject to the Surety Bond Coverage, 3, Demand for Payment hereunder may be made by written or electronic delivery of the executed Demand for Payment do the Insurer. If a Demand for Payment made hereunder does not, in any instance, conform to the terms and conditions of this Surety Bond, the Insurer shall give notice to the Paying Agent, as promptly as reasonably practicable, that such Demand for Payment was not effected in accordance with the terms and conditions of this Surety Bond and briefly state the reason(s) therefor. Upon being notified that such Demand for Payment was not effected in accordance with this Surety Bond, the Paying Agent may attempt to correct any such nonconforming Demand for Payment if, and to the extent that, the Paying Agent is entitled and able to do so, 4. The amount payable by the insurer under this Surety Bond pursuant to a particular Demand for Payment shall be Limited to the Surety Bond Coverage. The Surety Bond Coverage shall be reduced automatically to the extent of each payment made by the Insurer hereunder and will be reinstated to the extent of each reimbursement of the Insurer pursuant to the provisions of Article II of the Financial Guaranty Agreement dated the date hereof between the Insurer and the Obligor (the 'Financial Guaranty Agreement'); provided, that no premium is due and unpaid on this Surety Bond and that in no event shall such reinstatement exceed the Surety Bond Limit. The Insurer will notify the Paying Agent, in writing within five (5) days of such reimbursement, that the Surety Bond Coverage has been reinstated to the extent of such reimbursement pursuant to the Financial Guaranty Agreement and such reinstatement shall be effective as of the date the Insurer gives such notice. The notice to the Paying Agent will be substantially in the form attached hereto as Attachment 2, DSRF-NATL- I 10/14 Page 1 of national lim public finance guarantee 5. Any service of process on the Insurer or notice to the Insurer may be made to the Insurer at its offices located at I Ivlanhattanville Road, Suite 301, Purchase, New York 10577 and such service of process shall be valid and binding, 6. The term of this Surety Bond shall expire on the earlier of (i) March 1, 2046 (the maturity date of the Obligations being currently issued), or (ii) the date on which the Issuer has made all payments required to be made on the Obligations pursuant to the Document. 7. The premium payable on this Surety Bond is not refundable for any reason, including the payment prior to maturity of the Obligations. 8. Any suit hereunder in connection with any payment may be brought only by the Paying Agent within one year after (0 a Demand for Payment, with respect to such payment, is made pursuant to the terms of this Surety Bond and the Insurer has failed to make such payment, or (ii) payment would otherwise have been due hereunder but for the failure on the part of the Paying Agent to deliver to the Insurer a Demand for Payment pursuant to the terms of this Surety Bond, whichever is earlier. 9. There shall be no acceleration payment due under this Policy unless such acceleration is at the sole option of the Insurer. In witness whereof, the Insurer has caused this Surety Bond to be executed in facsimile on its behalf by its duly authorized officers, this Vt day of March, 2016, National Finance )oratklfl Attest: Secretary DSRF-NATL-1 10/14 Page of Exhibit A Dated November 3,2016 Surety Bond No. NP1401690 Bond Year Surety Bond Limit March 1, 2016 to December 1, 2035 $18,030,206.58 December 1, 2035 to December 1, 2037 $14,646,87814 December 1, 203 7 to August k $7,146,878.14 August 1, 2040 to October 1, 2044 $6,428,465.78 October 1, 2044 to March 1, 2046 4 $1,230,000.00 national ['8L I public finance J guarantee Attachment I Surety Bond No, NP1401690 DEMAND FOR PAYMENT 20 National Public Finance Guarantee Corporation I Manhattanville Road, Suite 301 Purchase, New York 10577 Attention: President RE: $7,146,878.14 Debt Service Reserve Fund surety for the Alaska Municipal Bond Bank General Obligation and Refunding Bonds issued and secured pursuant to the 2005 General Obligation flpnd Resolution and any debt issued on a parity therewith Reference is made to Policy No. NP.1401690 (the "Policy") issued by the National Public Finance Guarantee Corporation (the "Insurer!'), The terms which are capitalized herein and not otherwise defined have the meanings specified in the Policy unless the context otherwise requires. The Paying Agent hereby certifies that: (a) In accordance with the provisions of the Document (attached hereto as Exhibit A),, payment is due to the Owners of the Obligations on (the "Due Date") in an amount equal to $ (the "Amount Due"). (b) The amounts legally available to the Paying Agent on the Due Date will be $_ than the Amount Due (the "Deficiency"), The Paying Agent hereby requests that PflYmø4ThQ Deficiency be made by the Insurer under the Policy and directs that payment under the Policy be 11 ijtib fullowihg account by bank wire transfer of federal or other immediately available fends in uc,ni danc9i44 6;10 erms of the Policy [PAYING AGENT'S ACCOUNT INFORMATIOI"{]' The flank of New York Mellon Trust.Compa 'tf ABA #: eL. Account Nod: FFCTASTh Ref: Attn: Name/Phone number Beneficiary Address; [Name of Bank] [Street Address] [City, State Zip] Any person who knowingly and with intent to defraud any insurance company or other person files on application jbr insurance or statement of claim containing any materially false information, or conceals for the purpose of misleading, information concerning any fact material thereto, commits afraudulent insurance act, which is a crime, and shall also be subject to a civil penalty not to exceed Jive thousand dollars and the stated value of the claim for each such violation, The Bank of New York Mellon Trust Company, N.A. By Its DSRP-NATL- I 10/14 Page 3 of - national public finance - guarantee Attachment 2 Surety Bond No, NP 1401690 -NOTICE OF REINSTATEMEN 20. The Bank of New York Mellon Trust Company, N.A, San Francisco, California Attention: Corporate Trust Officer Reference is made to the Surety Bond No. NP1401690 (the 'Surety Bond") issued by the National Public Finance Guarantee Corporation (the "Insurer"). The terms which are capitalized herein and not otherwise defined have the meanings specified in the Surety Bond unless the context otherwise requires. The Insurer hereby delivers notice that it is in receipt of payment from the Obligor pursuant to Article II of the Financial Guaranty Ag aemoOt and øi ilte dote itt at the Surety Uond Ccivernu s $ ' \' Nittional Public Finrnce Gnat aidee Cot pot alioti President Attest; Secretary DSRP-NATL-1 10/14 Page 4 of 4 DEFINITIONS For all purposes of this Agreement and the Surety Bond, except as otherwise expressly provided herein or unless the context otherwise requires, all capitalized terms shall have the meaning as set out below, which shall be equally applicable to both the singular and plural forms of such terms, "Agreement" means this Financial Guaranty Agreement, "Closing Date" means March 1, 2016, "Commitment" means the commitment to issue Municipal Bond Guaranty Insurance in the form attached hereto as Annex C. "Debt Service Payments" means those payments required to be made by or on behalf of the Issuer which will be applied to payment of principal of and interest on the Obligations. "Demand for Payment" means the certificate submitted to the Insurer for payment under the Surety Bond substantially in the form attached to the Surety Bond as Attachment 1. "Document" means the General Ohflgaton Bond Resolution, adopted by the Board of Directors of the Issuer on July 13, 2005 as amended from time to time (the "2005 General Obligation Bond Resolution") and Resolution No, 2015-05, adopted on December 15 , 2015; "Event olDetault" shall mean those events of default set forth in Section 4.01 of the Agreement. "Insurer" has the same meaning as set forth in the first paragraph of this Agreement. "Issuer" means Alaska Municipal Bond Bank, "Obligations" means Alaska Municipal Bond Bank General Obligation and Refunding Bonds issued and secured pursuant to the 2005 General Obligation Bond Resolution and any debt issued on a parity therewith. "Owners" means 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. "Paying Agent" means The Bank of New York Mellon Trust Company, N.A., San Francisco, California, "Premium" means the total amount of premium as referenced in the Commitment to Issue a Debt Service Reserve Surety Bond dated February 24,2016 and any Commitment to Issue an Endorsement to a Debt Service Reserve Surety Bond executed from time to time thereafter, "Reimbursement Period" means, with respect to a particular Surety Boqd Payment, the period commencing on the date of such Surety l-ond Payment and endin g on the curlier of the date of cancellation of the Surety Bond due to nonpayment of Premiunt wheii due oron the expiration. of 365 days following such Surety Bond Payment. "Reimbursement. l,at&' means Citibank's prime rate plus three 3) percent per annum, as of the date of such Surely Bond Payment, said "prime rain" being the rate of interest announced from nine to time by Citibank, N.A., New York, New York, as its lrime rate. The rate of interest shall be calculated on the basis otihe elual imulii her ol'days elapsed over a 360-day year. "Surety Bond" menus that surety bond attached hereto as Annex A and issued by the Insurer guarantee lag, subject to the terms and limitations thereof, Debt Service Payments required to be made by [he Isuiuer under the Docipuent. "Surety Bond Coverage" means the amount available at any particular time to be paid under the terms of the Surety Bond, which amount shall never exceed the Surety Bond Limit. "Surety Bond Limit" means the maximum annual debt service for each of the bond years set forth in the Exhibit A of the Debt Service Reserve Surety Bond as such Exhibit may be amended from time to time. "Surety Bond Payment' means an amount equal to the Debt Servic' Payment requliect to be made by the Issuer pursuant to the Dopumant less (I) thot potion o the Debt Service Payment paid by or on behalf of the Issuer, and (ii) other timds legally a'ilnhlc lbr payment 10 the OwLicrs all us ce1;ifiecl in a Demand for Payment, ANNEX CvIMiTMENT ['i'o be provided] EEPEIIIENCE COMMITMENT ETIIENGTH 11 II.] t1.._ Application No.: 2016-001234-001 Initial Sale Date: March 1, 2016 Program Type: Negotiated OP RE: $7,500,000 incremental surety bond amount increase to Policy No. NP1401690 relating to $10,530,206.58 Debt Service Reserve Fund for Alaska Municipal Bond Bank, General Obligation and Refunding Bonds issued and secured pursuant to the 2005 General Obligation Bond Resolution and any other debt issued on a parity therewith (the "Obligations") This commitment to issue an endorsement to an existing debt service reserve surety bond (the "Commitment") dated October 19, 2016 constitutes an agreement between Alaska Municipal Bond Bank (the "Issuer") and National Public Finance Guarantee Corporation ("National"), a stock insurance company incorporated under the laws of the State of New York. Based on an approved application dated October 4, 2016, National agrees, upon satisfaction of the conditions herein, to issue an endorsement to the existing debt service reserve surety bond bearing the policy number NP1401690 (the "Endorsement"), that increases its stated amount to $18,030,206.58. The issuance of the Endorsement shall be subject to the following terms and conditions: 1. Payment by the Issuer, or by the Trustee on behalf of the Issuer, on the date of issuance of the Endorsement, of a nonrefundable premium in an amount of $150,000 [2.0% (premium rate) of $7,500,000 (incremental surety bond amount)]. 2. There shall have been no material adverse change in the Obligations or the Resolution, Bond Ordinance, Trust Indenture or other official document authorizing the issuance of the Obligations or in the final official statement or other similar document, including the financial statements included therein. 3. There shall have been no material adverse change in any information submitted to the Insurer as a part of the Application or subsequently submitted to be a part of the Application to the Insurer. 4, This Commitment may be signed in counterpart by the parties hereto, 5. The total amount of the Debt Service Reserve Fund Requirement to be satisfied by surety policies shall not exceed the total amount of cash available in the Debt Service Reserve Fund to satisfy the Debt Service Reserve Fund Requirement, 6, The amount available under the Surety.Bond shall reduce in accordance with the terms thereof. This Commitment may be signed in counterpart by the parties hereto. Dated this lgthday of October, 2016. Nationu . 1bblil ' Finance GuarAntee Corporation By Secretary Tit