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<br />51 <br />moratorium, or other similar laws affecting creditors’ rights, by the application of equitable <br />principles and by the exercise of judicial discretion in appropriate cases. <br /> <br />Although bankruptcy proceedings would not cause the liens to become extinguished, <br />bankruptcy of a property owner could result in a delay in prosecuting superior court foreclosure <br />proceedings. <br /> <br />Projected Tax Revenues <br /> <br />In estimating that projected Tax Revenues will be sufficient to pay debt service on the <br />2018 Bonds, the Successor Agency has made certain assumptions with regard to present and <br />future assessed valuation in the Project Area, future tax rates and percentage of taxes <br />collected. The Successor Agency believes these assumptions to be reasonable, but there is no <br />assurance these assumptions will be realized and to the extent that the assessed valuation and <br />the tax rates are less than expected, the net tax increment available to pay debt service on the <br />2018 Bonds will be less than those projected and such reduced net tax increment may be <br />insufficient to provide for the payment of principal of, premium (if any) and interest on the 2018 <br />Bonds. See “THE PROJECT AREA – Projected Tax Revenues and Debt Service Coverage.” <br /> <br />Hazardous Substances <br /> <br />An additional environmental condition that may result in the reduction in the assessed <br />value of property would be the discovery of a hazardous substance that would limit the <br />beneficial use of taxable property within the Project Area. In general, the owners and operators <br />of property may be required by law to remedy conditions of the property relating to releases or <br />threatened releases of hazardous substances. The owner or operator may be required to <br />remedy a hazardous substance condition of property whether or not the owner or operator has <br />anything to do with creating or handling the hazardous substance. The effect, therefore, should <br />any of the property within the Project Area be affected by a hazardous substance, could be to <br />reduce the marketability and value of the property by the costs of remedying the condition. <br /> <br />Natural Disasters <br /> <br />The value of the property in the Project Area in the future can be adversely affected by a <br />variety of additional factors, particularly those which may affect infrastructure and other public <br />improvements and private improvements on property and the continued habitability and <br />enjoyment of such private improvements. Such additional factors include, without limitation, <br />geologic conditions such as earthquakes, topographic conditions such as earth movements, <br />landslides and floods and climatic conditions such as droughts. In the event that one or more of <br />such conditions occur, such occurrence could cause damages of varying seriousness to the <br />land and improvements and the value of property in the Project Area could be diminished in the <br />aftermath of such events. A substantial reduction of the value of such properties and could <br />affect the ability or willingness of the property owners to pay the property taxes. <br /> Seismic. Land in the City and the County, like much of the State, is subject to seismic <br />activity. Earthquake faults exist in many parts of Northern California, including in areas near to <br />the Project Area, particularly the Hayward Fault, which is within the vicinity of the Project Area. <br />Most new construction is required to be built in accordance with the Uniform Building Code <br />which contains standards designed to minimize structural damage caused by seismic events <br />however, the occurrence of severe seismic activity affecting the Project Area could result in <br />156