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application of any payments which are less than the total rental due and owing shall be deemed a waiver of any default hereunder. SECTION 5.04. Rental Abatement. Except to the extent of (i) amounts held by the Trustee in the Revenue Fund, (ii) amounts received in respect of use and occupancy insurance, and (iii) amounts, if any, otherwise legally available to the Trustee for payments in respect of the Bonds, during any period in which, by reason of material damage, destruction, title defect or condemnation there is substantial interference with the use and possession by the City of any portion of the Leased Property, rental payments due hereunder with respect to such portion of the Leased Property shall be abated proportionately by an amount such that the portion of Base Rental remaining unabated represents the fair rental value of the remaining portion of the Leased Property, as calculated by the City and set forth in writing to the Authority and the Trustee. Any abatement of rental payments pursuant to this Section shall not be considered an event of default as defined in Article X hereof. The City waives the benefits of Civil Code Sections 1932(1), 1932(2) and 1933(4) and any and all other rights to terminate the Lease by virtue of any such interference and the Lease shall continue in full force and effect. Such abatement shall continue for the period commencing with the date of such damage, destruction, tide defect or condemnation and ending with the substantial completion of the work of repair or replacement of the portions of the Leased Property so damaged, destroyed, defective or condemned. In the event that rental is abated, in whole or in part, pursuant to this Section due to damage, destruction, title defect or condemnation of any part of the Leased Property and the City is unable to repair, replace or rebuild the I eased Property from the proceeds of insurance, if any, the City agrees to apply for and obtain, if reasonably available, any appropriate state and/or federal disaster relief in order to obtain funds to repair, replace or rebuild the Leased Property. SECTION 5.05. Prepayment of Rental Payments. The City may prepay, from Net Proceeds received by it pursuant to Section 7.01, all or any portion of the components of Base Rental relating to any portion of the Leased Property then unpaid, in whole on any date, or in part on any Interest Payment Date in integral multiples of five thousand dollars ($5,000) so that the aggregate annual amounts of principal components of Base Rental payments which shall be payable after such prepayment date shall each be in an integral multiple of five thousand dollars ($5,000) and shall be as nearly proportional as practicable to the aggregate annual amounts of principal components of Base Rental Payments, with respect to the portion of the Leased Property so prepaid. The City may prepay, from any source of available funds, portions of Base Rental coming due hereunder, in the amounts and at the times permitted to effect the redemption of the 1994 Bonds pursuant to Section 2.03(a) of the Indenture. The City may also prepay Base Rental in order to effect a defeasance of Bonds pursuant to the Indenture. LA1-63219.5 14