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and$10,600,000 aggregate principal amount shall be issued as Inverse Rate Securities ("IRS"),
<br /> all of like tenor and date (except for such variations, if any, as may be required to designate
<br /> varying numbers, maturities and interest rates), and is issued under and pursuant to the
<br /> provisions of an indenture, dated as of March 1, 1994 (the "Indenture"), between the Authority
<br /> and the Trustee (copies of which are on file at the office of the Secretary of the Authority and
<br /> at the Corporate Trust Office of the Trustee).
<br /> The Bonds are issuable only as fully registered bonds without coupons, in the
<br /> denomination of $50,000 and integral multiples thereof.
<br /> The Bonds are issued to provide funds to finance the cost of acquiring, constructing and
<br /> installing certain public capital improvements (the "Project") in the City of Santa Ma (the
<br /> "City"). The Bonds are limited obligations of the Authority and are payable, as to interest
<br /> thereon and principal thereof, solely from the revenues derived from base rental payments paid
<br /> by the City pursuant to a lease, dated as of March 1, 1994 (the "Lease"), between the
<br /> Authority, as lessor, and the City, as lessee, for the use and possession of the Leased Property
<br /> (as defined in the Lease) as long as the City has such use and possession of the Leased
<br /> Property, which includes the Project, as well as from all other benefits, charges, income,
<br /> proceeds, profits, receipts, rents and revenues derived by the Authority, as assignee of the
<br /> Agency's rights under the Lease, from operation or use of the Leased Property (the
<br /> "Revenues"). All the Bonds are equally and ratably secured in accordance with the terms and
<br /> conditions of the Indenture by a pledge of the Revenues, which Revenues shall be held in trust
<br /> for the security and payment of the interest on, principal of and redemption premiums, if any,
<br /> on the Bonds as provided in the Indenture.
<br /> The Bonds shall be limited obligations of the Authority and shall be payable solely from
<br /> the Revenues and amounts on deposit in the funds and accounts established under the Indenture
<br /> (other than amounts on deposit in the Rebate Fund). The Bonds do not constitute a debt or
<br /> liability of the City, the State of California, or any of its political subdivisions, and neither the
<br /> faith and credit of the City, the State of California, nor any of its political subdivisions are
<br /> pledged to the payment of the principal of or interest on the Bonds.
<br /> Reference is hereby made to the Indenture and any and all amendments thereof and
<br /> supplements thereto for a description of the terms under which the Bonds are issued, the
<br /> provisions with regard to the nature and extent of the Revenues, and the rights of the registered
<br /> owners of the Bonds. All of the terms of the Indenture are hereby incorporated herein and
<br /> constitute a contract between the Authority and the registered owner of this Bond, to all the
<br /> provisions of which the registered owner of this Bond, by acceptance hereof, agrees and
<br /> consents. Each registered owner hereof shall have recourse to all of the provisions of the
<br /> Indenture and shall be bound by all of the terms and conditions thereof.
<br /> The Authority has agreed and covenanted that, for the payment of the interest on, the
<br /> principal of and redemption premium, if any, on this Bond and all other Bonds of this issue
<br /> authorized by the Indenture when due, there has been created and will be maintained by the
<br /> Trustee a special fund into which all Revenues (other than deposits to the Rebate Fund created
<br /> A-3-3
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