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It1UI h t:\ [Reserved] SECURITY FOR THE BONDS Pledge of Gas Tax Revenues First and Exclusive Lien on Gas Tax Revenues. The Bonds and Additional Obligations shall be secured by a first pledge of all Gas Tax Revenues. Under the Indenture, the City transfers, places a charge upon, assigns and sets over to the Trustee, for the benefit of the Owners, that portion of the Gas Tax Revenues which is necessary to pay the principal of and interest on the Bonds in any Fiscal Year, together with all moneys on deposit in the Debt Service Fund, including the Interest Account, the Principal Account, the Sinking Account and the Reserve Account and such portion of the Gas Tax Revenues is irrevocably pledged to the punctual payment of the principal or Redemption Price of and interest on the Bonds. The Bonds and any Additional Obligations will be equally secured by a pledge charge and lien upon the Gas Tax Revenues, without priority for number or date. The Gas Tax Revenues may not be used for any other purpose while any of the Bonds or Additional Obligations remain Outstanding, except that out of Gas Tax Revenues there may be apportioned and paid such sums for such purposes, as are expressly permitted by the Indenture. See "SECURITY FOR THE BONDS — Additional Obligations." This pledge constitutes a first, direct and exclusive charge and lien on the Gas Tax Revenues for the payment of the principal of and interest on the Bonds in accordance with the terms thereof. Gas Tax Revenues. The Indenture defines Gas Tax revenues as all amounts received by the City from the State in accordance with Streets and Highways Code Section 2105, 2106 and 2107, as such provisions may be amended, and all other revenues (except revenues received by the City in accordance with Streets and Highways Code Section 2107.5), if any, received by the City from taxes imposed on the purchase of motor vehicle fuels and any payments, subventions or reimbursements received by the City from the State in lieu of such revenues. Gas Tax Fund In order to carry out and effectuate the pledge and lien of Gas Tax Revenues to payment of debt service on the Bonds, the City will covenant and agree in the Indenture that all Gas Tax Revenues, when and as received, will be held by the City in trust and will be deposited by the City in its Gas Tax Fund and will be accounted for through and held in trust in the Gas Tax Fund, and the City will only have such beneficial right or interest in any of such money as provided in the Indenture. All Gas Tax Revenues will be accounted for separately and apart from all other money, funds, accounts or other resources of the City. All Gas Tax Revenues will be transferred, disbursed, allocated and applied solely to the uses and purposes set forth below: (1) Administrative Costs. The City will first pay from the moneys in the Gas Tax Fund the budgeted Administrative Costs as such costs become due and payable. (2) Debt Service Fund. At least five Business Days prior to each Interest Payment Date, the City shall transfer Gas Tax Revenues to the Trustee for the purpose of paying the Bonds. Not later than the first Business Day preceding each date on which principal of or interest on the Bonds becomes due and payable, the Trustee will transfer from the Debt Service Fund and deposit into the following respective accounts (each of which the Trustee will establish and maintain within the Debt Service Fund), the following amounts in the following order of priority, the requirements of each such account at the time of deposit to be satisfied before any transfer is made to any account subsequent in priority: A 55-93