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for the benefit of the Owners of the Certificates. Any suit <br />for money damages would be subject to limitations on legal <br />remedies against cities in California, including a limitation <br />on enforcement of judgments against funds needed to serve the <br />public welfare and interest. See "APPENDIX B - S~MARIES OF <br />DOCUMENTS -- THE FACILITY LEASE -- DEFAULT BY CITY." <br /> <br />Abatement <br /> <br /> In the event the construction of Capital Project I is not <br />completed or in the event of loss or substantial interference <br />in the use and possession of all or any portion of the Project <br />by the City caused by material damage or destruction to or <br />condemnation of the Project, Rental Payments will be subject to <br />abatement. In the event the Project could not be replaced <br />during the period of time that proceeds of the City's rental <br />interruption insurance will be available (with respect to <br />Capital Project II) in lieu of Rental Payments plus the period <br />for which funds are available from the Reserve Fund, or in the <br />event that casualty insurance proceeds (with respect to Capital <br />Project II) or condemnation proceeds are insufficient to <br />provide for complete repair or replacement of the Project or <br />redemption of the Certificates, there could be insufficient <br />funds to cover payments to Certificate Owners in full. <br /> <br />No Acceleration Upon Default <br /> <br /> If the City defaults on its obligations to make Rental <br />Payments, the Trustee may have limited ability to re-let the <br />Project so as to preserve the tax exempt nature of the interest <br />component of the Rental Payments and the Certificates. In the <br />event of a default, there is no available remedy of <br />acceleration of the total Rental Payments due over the term of <br />the Lease. The City will only be liable for Rental Payments on <br />an annual basis, and the Trustee would be required to seek a <br />separate judgment each year for that year's Base Rental <br />Payments. <br /> <br />Insolvency or Bankruptcy of the Lessor <br /> <br /> Title to the Project will be held by the Lessor throughout <br />the term of the Lease. Therefore, the title to the Project may <br />be considered property of the estate of the Lessor which may be <br />disposed of by a bankruptcy court in the event of a bankruptcy, <br />insolvency or similar proceeding by or against the Lessor. <br /> <br /> 32 <br /> <br /> <br />