Laserfiche WebLink
<br />-8- <br /> <br />(ii) to the Trustee (or other recipient set forth in a Parity Debt <br />Instrument) the amount needed to pay the Installment Payments and principal of, <br />and interest on, any Parity Debt; <br /> <br />(iii) to the Trustee (or other recipient set forth in a Parity Debt <br />Instrument) the amount of any deficiency in any reserve fund established for any <br />Bonds or Parity Debt, the notice of which deficiency has been given to the City in <br />accordance with the Indenture and the related Parity Debt Instruments, on a pro <br />rata basis; and <br /> <br />(iv) as long as all of the foregoing payments, allocations and transfers <br />are made at the times and in the manner set forth above, any moneys remaining <br />in the Water Fund may at any time be treated as surplus and applied for any <br />lawful purpose. <br /> <br />(c) No Preference or Priority. Payment of the Installment Payments and the <br />principal of and interest on any Parity Debt shall be made without preference or priority among <br />the Installment Payments and such Parity Debt. If the amount of Net Revenues on deposit in <br />the Water Fund is at any time insufficient to enable the City to pay when due the Installment <br />Payments and the principal of and interest on any Parity Debt, such payments shall be made on <br />a pro rata basis. <br /> <br />SECTION 4.6. Special Obligation of the City; Obligations Absolute. The City’s <br />obligation to pay the Installment Payments and any other amounts coming due and payable <br />hereunder is a special obligation of the City limited solely to the Net Revenues. Under no <br />circumstances is the City required to advance moneys derived from any source of income other <br />than the Net Revenues and other sources specifically identified herein for the payment of the <br />Installment Payments and such other amounts. No other funds or property of the City are liable <br />for the payment of the Installment Payments and any other amounts coming due and payable <br />hereunder. <br /> <br />The obligations of the City to pay the Installment Payments from the Net Revenues and <br />to perform and observe the other agreements contained herein are absolute and unconditional <br />and are not subject to any defense or any right of set-off, counterclaim or recoupment arising <br />out of any breach by the Authority or the Trustee of any obligation to the City or otherwise with <br />respect to the Water System, whether hereunder or otherwise, or out of indebtedness or liability <br />at any time owing to the City by the Authority or the Trustee. Until all of the Installment <br />Payments, all of the Additional Payments and all other amounts coming due and payable <br />hereunder are fully paid or prepaid, the City (a) will not suspend or discontinue payment of any <br />Installment Payments, Additional Payments or such other amounts, (b) will perform and observe <br />all other agreements contained in this Agreement, and (c) will not terminate this Agreement for <br />any cause, including, without limiting the generality of the foregoing, the occurrence of any acts <br />or circumstances that may constitute failure of consideration, eviction or constructive eviction, <br />destruction of or damage to the Water System, failure to complete the acquisition and <br />construction of the Project by the estimated completion date thereof, sale of the Water System, <br />the taking by eminent domain of title to or temporary use of any component of the Water <br />System, commercial frustration of purpose, any change in the tax law or other laws of the United <br />States of America or the State of California or any political subdivision of either thereof, or any <br />failure of the Authority or the Trustee to perform and observe any agreement, whether express <br />Page 83 of 205