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8.A. - Page 57 creditor. If a foreclosure sale is thereby set aside, the judgment is revived and the judgment creditor is entitled to interest on the revived judgment as if the sale had not been made. If foreclosure proceedings were ever instituted, any holder of a mortgage or deed of trust on the affected property could, but would not be required to, advance the amount of the delinquent Special Tax ulstallment to protect its security interest. In the event such superior court foreclosure or foreclosures are necessary, there could be a delay in principal and interest payments to the owners of the Bonds pending prosecution of the foreclosure proceedings and receipt by the District of the proceeds of the foreclosure sale, if 1ny. Judicial foreclosure actions are subject to the normal delays associated with court cases and may be further slowed by bankruptcy actions and other factors beyond the control of the City, including delay due to crowded local court calendars or legal tactics and, in any event could take several years to complete. In particular, bankruptcy proceedings uzvolving the owner of the delinquent Taxable Parcel could cause a delay, reduction or elimination in the flow of Special Tax Revenues to the Fiscal Agent. See "—Bankruptcy Delays." Natural Disasters The value of the Taxable Parcels in the future can be adversely affected by a variety of natural occurrences, particularly those that may affect infrastructure and other public improvements and private improvements on the Taxable Parcels and the continued habitlbility and enjoyment of such private improvements. Such occurrences include, without limitation, wildfire, earthquakes, tsunamis and floods. One or more of such natural disasters could occur and could result in damage to improvements of varying seriousness. The damage may entail significant repair or replacement costs and that repair or replacement may never occur either because of the cost, or becluse replir or replacement will not facilitlte habitability or other use, or because other considerations preclude such repair or replacement. Under any of these circumstances, the value of the Taxable Parcels may well depreciate or disappear. Like other areas of Northern California, property in the District is subject to the risk of major earthquake damage. During the past 150 years the San Francisco Bay Area has experienced several major and numerous minor earthquakes. The San Andreas fault, at its closest, is about seven miles to the west of the District; the Hayward fault, at its closest, is lbout 15 miles to the east. A significant earthquake along these or other flults is possible during the period the Bonds will be outstanding. The most recent major earthqual�e was the October 17, 1989 Loma Prieta earthquake with a magnitude of 7.1 on the Richter scale and an epicenter near Santa Cruz, approximately 50 miles south of the City. Although buildings and other structures in San Francisco, Oakland and other nearby local communities suffered damage from the Loma Prieta earthquake, buildings in the immediate vicinity of the District did not suffer any major property damage. There were no real property improvements in the District at the time of the Loma Prieta earthquake. The land within the District primarily consists of b1y fill; however, the City understands that the buildings on the Taxable Parcels were constructed on pilings, in accordance with current State earthquake standards and geotechnic consultant recommendations. Notwithstlnding such construction, an earthqulke or one or more of the other conditions described ii1 the second preceding paragraph may occur and may cause damage to public and private improvements on parcels in the District of varying seriousness, and any such damage may entail significant repair or replacement costs (or such repair or replacement may never occur either because of the cost or because replir or repllcement will not facilitate usability or because other considerations may preclude such repair or replacement). Consequently, the occurrence of any of these conditions could result in a -33-