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<br />13 <br />SECURITY FOR THE BONDS <br />The principal of and interest on the Bonds are not a debt of the Authority (except to the <br />limited extent described in this Official Statement) or the City, nor a legal or equitable pledge, <br />charge, lien or encumbrance, upon any of their respective property, or upon any of their income, <br />receipts, or revenues except the Revenues and other amounts pledged under the Indenture. <br />This section provides summaries of the security for the Bonds and certain provisions of <br />the Indenture and the Lease. See “APPENDIX B – SUMMARY OF PRINCIPAL LEGAL <br />DOCUMENTS” for a more complete summary of the Indenture and the Lease. Capitalized <br />terms used but not defined in this section have the meanings given in APPENDIX B. <br />Pledge of Revenues <br />The Bonds are payable from and secured by a pledge of Revenues and certain funds <br />and accounts established and held by the Trustee under the Indenture. Revenues, as defined <br />in the Indenture, mean: <br />• all amounts received by the Authority or the Trustee under or with respect to the <br />Lease, including, without limiting the generality of the foregoing, all of the Lease <br />Payments (including both timely and delinquent payments, any late charges, and <br />whether paid from any source), but excluding (i) any amounts described in the <br />provisions of the Lease relating to permitted amendments that provide for <br />additional rental to be pledged or assigned for the payment of bonds issued to <br />finance or refinance projects for which the City is authorized to expend its funds, <br />and (ii) any “Additional Rental Payments” (consisting of certain administrative <br />costs due to the Authority and the Trustee under the Lease), and <br /> <br />• all interest, profits or other income derived from the investment of amounts in any <br />fund or account established under the Indenture. <br /> <br />Pursuant to the Assignment Agreement, the Authority has assigned to the Trustee for <br />the benefit of the Owners of the Bonds, certain of its rights under the Lease, including its right to <br />receive Lease Payments for the purpose of securing the payment of debt service on the Bonds <br />and the right to pursue remedies in the event the City defaults under the lease. <br />THE BONDS ARE SPECIAL OBLIGATIONS OF THE AUTHORITY PAYABLE SOLELY <br />FROM AND SECURED BY A PLEDGE OF REVENUES AND CERTAIN FUNDS AND <br />ACCOUNTS HELD UNDER THE INDENTURE. THE AUTHORITY HAS NO TAXING POWER. <br />THE OBLIGATION OF THE CITY TO MAKE LEASE PAYMENTS UNDER THE LEASE DOES <br />NOT CONSTITUTE AN OBLIGATION OF THE CITY FOR WHICH THE CITY IS OBLIGATED <br />TO LEVY OR PLEDGE ANY FORM OF TAXATION OR FOR WHICH THE CITY HAS LEVIED <br />OR PLEDGED ANY FORM OF TAXATION. NEITHER THE BONDS NOR THE OBLIGATION <br />OF THE CITY TO MAKE LEASE PAYMENTS UNDER THE LEASE CONSTITUTES AN <br />INDEBTEDNESS OF THE CITY, THE COUNTY, THE STATE OF CALIFORNIA (THE “STATE”) <br />OR ANY OF ITS POLITICAL SUBDIVISIONS (INCLUDING ANY MEMBER OF THE <br />AUTHORITY) IN CONTRAVENTION OF ANY CONSTITUTIONAL OR STATUTORY DEBT <br />LIMITATIONS.