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9.0 -1$ <br />Attachment IV <br />Summary of Principal Legal Documents <br />Indentu; a of Trust <br />This document establishes a trust estate for the benefit of bond investors. It <br />establishes a lien on lease payments received by the Redwood City Public <br />Financing Authority (the "Authority') for the payment of interest on and the <br />principal of bonds issued by the Authority to refund the 1991 bonds and obtain <br />funds to loan to the Agency. The trust indenture serves as a contract with <br />bondholders. It fixes the denominations, payment terms and similar such terms <br />of the bonds, establishes a pledge of lease revenues as security for the bonds, <br />establishes covenants of the Authority, establishes events of default, remedies <br />of bondholders, duties of the trustee, bond redemption provisions and <br />miscellaneous other provisions relating to the bonds and the security therefore. <br />Subordinate Site Lease <br />Under the Subordinate Site Lease the City will lease the sites on which the <br />leased projects are situated to the Authority. It establishes the term of the <br />Subordinate Site Lease, payment, purpose of the lease, the City's duty to <br />comply with applicable environmental regulations, certain rights of the City and <br />proscriptions on the use of the sites by the Authority, events of default and other <br />miscellaneous provisions. <br />Subordinate Facilitv Lease <br />Under the Subordinate Facility Lease the Authority will lease the sites on which <br />the leased projects are situated back to the City for annual lease payments in <br />amounts equal to debt service on the bonds issued pursuant to the Trust <br />Indenture. It establishes the term of the Subordinate Facility Lease, payment <br />provisions, the City's duty to make annual appropriations, duties to maintain the <br />leased projects, duties to maintain certain insurance, events of defaults and <br />remedies, various covenants of the City and other miscellaneous provisions. <br />Preliminary Official Statement <br />The preliminary official statement is the primary disclosure document provided <br />to investors in connection with the Authority's issuance of bonds. Disclosure of <br />these risks is a prudent and necessary condition to the issuance of bonds. It <br />discloses material information regarding the City and the Authority, the authority <br />for and purpose of the bonds, the projects to be financed and the security for <br />the payment of interest on and the repayment of the principal of the bonds, the <br />terms of the bonds and the redemption provisions therefor, debt service on the <br />bonds and material risk factors relating to the City's ability to make lease <br />IV -1 <br />