Res13 PFA 13-02 - Laserfiche WebLink

Browse Search

Section 3.11. Receipt and Deposit of Revenues. The Authority hereby 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 riglnt, title and interest of the Authority in the Installment Purchase Contract (except for certain rights to indemnification set forth therein). Such assignment is to the Trustee solely in its capacity as Trustee hereunder and not in its individual or personal capacity and is subject to the provisions of this Indenture. In acting pursuant to such assignment, the Trustee is entitled to all of the protections, limitations from liability and indemnities provided it hereunder. The Trustee shall be entitled to and shall collect and receive all of the Revenues, and any Revenues collected or received by the Authority shall be deemed to be held, and to have been collected or received, by the Authority as the agent of the Trustee and shall forthwith be paid by the Authority to the Trustee. The Trustee also shall be entitled to and shall, sub}ect to the provisions of Article VII, take all steps, actions and proceedings which the Trustee detertnines to be reasonably necessary in its judgment to enforce, either jointly with the Authority or separately, all of the rights of the Authority and all �f the obligations of the City under the Installment Purchase Contract. The parties hereto acknowledge that although all Bonds are secured equally and ratably by the Revenues, moneys with respect to obligations other than.the Bonds may be held by the Trustee or by trustees other than the Trustee under documents and agreements other than the Indenture, and the Indenture imposes no obligations upon the Trustee with respect to such other obligations. The Authority shall make such transfers necessary to effectuate such obligations' parity claim on such Revenues contemplated hereby. Section 3.12. Liabilitv of Authority Limited. Notwithstanding anything contained herein, the Authority shall not be required to advance any moneys derived from any source of income other than Revenues legally. available therefor and the other funds provided herein for the payment of the Installment Payments or for the performance of any agreements or covenants contained herein required to be performed by it. The Authority may, however, hut shall not be required to, advance moneys for any such purpose so long as such moneys aze derived from a source legally available for such purpose and may be legally used by the Authority for such purpose. The obligation of the Authority to pay principal of and interest on the Bonds and the other amounts due hereunder is a special obligation of the Authority payable solely from the moneys legally available therefor hereunder; 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. -24- 338471_1.DOC