AgdaPkt 2003-11-03 - Laserfiche WebLink

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q,03(0 SECURITY AND SOURCES OF PAYMENT FOR THE BONDS Revenues The Bonds are special limited obligations of the Authority, payable st lely from and secured by Revenues (as defined herein) of the Authority consisting primarily of Lease Payments received by the Authority from the City. The Lease Payments are due under the Lease Agreement on the payment date or prepayment date of such Bond, and the interest component of all Lease Payments (based on the stated interest rate with respect to such Bond) Under the Indenture, "Revenues" are defined as (a) all amounts received by the Authority or the Trustee pursuant to or with respect to the Lease Agreement, including, without limiting the generality of the foregoing, all of the Lease Payments (including both timely and delinquent payments and any late charges), prepayments of Lease Payments, insurance proceeds and condemnation proceeds deposited in the Insurance and Condemnation Fund, but excluding any Additional Payments, and (b) all interest, profits or other income derived from the investment of amounts in any fund or account established pursuant to the Indenture. The obligation of the Authority to pay principal of and interest on the Bonds and the other amounts due under the Indenture is a special obligation of the Authority payable solely from the moneys legally available therefor under the indenture, and does not constitute a debt of the Authority or of the State of California or of any political subdivision thereof within the meaning of any constitutional or statutory debt limitation or restriction. The Authority, pursuant to the Indenture, transfers in trust, grants a security interest in and assigns to the Trustee, for the benefit of the Owners from time to time of the Bonds, all of the Revenues and all of the right, title and interest of the Authority in the Lease Agreement (except for the right to receive any Additional Payments to the extent payable to the Authority and certain rights to indemnification set forth therein). The City will pay Lease Payments directly to the Trustee, as assignee of the Authority. The Lease Payments will be deposited into the Lease Payment Account and the Redemption Account within the Payment Fund created under the Indenture. The Trustee shall transfer the money contained in the Lease Payment Account and the Redemption Account to pay in full principal of and interest on the Bonds on each Interest Payment Date. All moneys in the Lease Payment Account shall be used and withdrawn by the Trustee solely for the purpose of paying principal of and interest on the Bonds on each Interest Payment Date or mandatory redemption dates, as applicable. Lease Payments For the right to the use and occupancy of the Leased Property, the Lease Agreement requires the City to make Lease Payments. Scheduled Lease Payments relating to the Bonds are due on the first day of the month prior to each Interest Payment Date and are set forth above under the heading "LEASE PAYMENT SCHEDULE." The Lease Agreement provides that the amount of Lease Payments will be subject to abatement during any period in which by reason of damage or destruction there is substantial interference with the use and occupancy by the City of the Leased Property or any portion thereof. See "Abatement" below. THE OBLIGATION OF THE CITY TO MAKE THE LEASE PAYMENTS DOES NOT CONSTITUTE A DEBT OF THE CITY OR THE STATE OR OF ANY POLITICAL SUBDIVISION THEREOF WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY DEBT LIMIT OR RESTRICTION, AND DOES NOT CONSTITUTE AN -10-