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8.A. - Page 34 In the event that the Special Taxes are not paid when due, the only sources of funds lvailable to repay the Bonds are amounts held by the Fiscal Agent under the Fiscal Agent Agreement in the Bond Fund, the Special Tax Fund and the Reserve Fund, and the proceeds, if any, from foreclosure sales of Taxable Parcels with delinquent Special Tax levies. Special Taxes In accordance with the provisions of the Act, the Rate and Method was approved in 2000 by the then qualified elector and sole owner of land in the District and is set forth in its entirety in Appendix B. Under the Fiscal Agent Agreement, the City is obligated to fix and levy the amount of Special Taxes within the District required for the timely payment of principal of and interest on the outstanding Bonds becoming due and payable, including any necessary replenishment of the Reserve Fund and an amount estimated to be sufficient to pay the Administrative Expenses during the appliclble year, all in accordance with the Rate and Method and the Ordinance. The Special Taxes levied on any Taxable Parcel may not exceed the maximum allowed under the Rate and Method. See "SECUIZITY FOR THE BONDS— Summary of Rate and Method" and Appendix B—Rate and Method." The Special Taxes are payable and are collected in the same manner, at the same time and in the same installment as the County ad valorem taxes on property levied on the secured tax roll are payable, and pursuant to the Act have the same priority, become delinquent at the same times and in the same proportionite amounts 1nd bear the same proportionate penalties and interest after deli�lquency as do the taxes levied on the tax roll; provided, however, that the Special Taxes may be collected in such other manner as the City shall prescribe if necessary to pay the debt service on the Bonds Although the Special Taxes will constitute a lien on Taxable Parcels within the District, they do not constitute a personal indebtedness of the owners of the Taxable Parcels. Pursuant to Section 53356.1 of the Act, in the event of any delinquency in the payment of the Special Tax on a Tlxable Parcel, the City m1y order the institution of a superior court action to foreclose the lien on the Taxable Parcel within specified time limits. In such an action, the Taxable Parcel, along with a parcel with related Parking Units (see "SECUIZITY FOR THE BONDS— Summary of Rate and Method – Undivided Levy"), may be sold at judicial foreclosure sale. The Act provides that the Specill T1xes are secured by a continuing lien which is subject to the same lien priority in the case of delinquency as acl vcrlorefn property taxes. See "—Summary of Rate and Method," "—Covenant for Superior Court Foreclosure" and "SPECIAL IZISK FACTORS—Parity Taxes and Special Assessments." Other liens for taxes and assessments may already exist on the property located within the District and others could come into existence in the future. See "SPECIAL RISK FACTORS—Parity Taxes and Special Assessments." There is no assurance that any owner of a Taxable Parcel will be financially able to pay the annual Special Taxes or that it will pay such taxes even if financially able to do so. See "SPECIAL RISK FACTORS." For historical information regarding the payment of, or delinquencies with respect to, Special Taxes in the District, see "THE DISTRICT—Special Tax Levies and Delinquencies." Special Tax Fund Deposit of Special Tax Revenues. The City is obligated by the Fiscal Agent Agreement to deposit in the Special Tax Fund held by the City, immediately upon receipt by the City, all Special Tax Revenue received by the City (except for amounts necessary to pay the Annual Administrative Expense Deposit, which will be deposited to the Administrative Expense -10-