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11 <br />SECURITY AND SOURCES OF PAYMENT FOR THE BONDS <br />This section provides summaries of the Bonds and certain provisions of the Indenture and <br />2024 Installment Purchase Contract. See APPENDIX D for a more complete summary of the <br />Indenture and 2024 Installment Purchase Contract. Capitalized terms used but not defined in this <br />section have the meanings given in APPENDIX D. <br />Neither the Bonds, nor the obligation of the City to make 2024 Installment Payments, <br />constitutes a debt or a liability of the Authority, the City, the State of California or any of its political <br />subdivisions within the meaning of any Constitutional limitation on indebtedness, or a pledge of <br />the full faith and credit of the City. The Bonds are secured solely by the pledge of Revenues and <br />certain funds held under the Indenture. The Bonds are not secured by a pledge of the taxing <br />power of the City. The Authority has no taxing power. The 2024 Installment Payments are payable <br />only from Net Revenues of the Enterprise. <br />Revenues; Pledge of Revenues <br />Pledge of Revenues and Other Amounts. The Bonds are special limited obligations of <br />the Authority, payable solely from and secured by Revenues (as defined below) of the Authority <br />consisting primarily of 2024 Installment Payments received by the Authority from the City (which <br />2024 Installment Payments are payable by the City solely from Net Revenues, on a parity with <br />the 2017 Installment Payments and the 2015 Installment Payments). The Bonds are also secured <br />by amounts on deposit in the funds and accounts established under the Indenture, other than the <br />interest earnings resulting from the investment of the Rebate Fund. <br />Definition of Revenues. “Revenues” are defined in the Indenture as (a) all amounts <br />received by the Authority or the Trustee pursuant to or with respect to the 2024 Installment <br />Purchase Contract, including, without limiting the generality of the foregoing, all of the 2024 <br />Installment Payments (including both timely and delinquent payments and any late charges), <br />prepayments of 2024 Installment Payments, and insurance proceeds and condemnation <br />proceeds deposited in the Insurance and Condemnation Fund, (b) amounts deposited in the <br />Payment Fund, and (c) all interest, profits or other income derived from the investment of amounts <br />in any fund or account established pursuant to the Indenture (except the Rebate Fund). <br />Assignment to Trustee. The Authority, in the Indenture, transfers in trust, grants a <br />security interest in and assigns to the Trustee, for the benefit of the Owners from time to time of <br />the Bonds, all of the Revenues and all of the right, title and interest of the Authority in the 2024 <br />Installment Purchase Contract (except for certain rights to indemnification set forth therein). <br />The Trustee is entitled to all of the protections, limitations from liability and indemnities <br />provided it under the Indenture. The Trustee shall be entitled to and shall collect and receive all <br />of the Revenues, and any Revenues collected or received by the Authority shall be deemed to be <br />held, and to have been collected or received, by the Authority as the agent of the Trustee and <br />shall forthwith be paid by the Authority to the Trustee. The Trustee also shall be entitled to and <br />shall, subject to the provisions of the Indenture, take all steps, actions and proceedings which the <br />Trustee determines to be reasonably necessary in its judgment to enforce, either jointly with the <br />Authority or separately, all of the rights of the Authority and all of the obligations of the City under <br />the 2024 Installment Purchase Contract. <br />8.A. - Page 25 of 255 <br />653