Item 9 Preliminary Official Statment Dated February 25, 1994

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Authority has covenanted to apply Revenues in accordance with provisions of the Indenture Summary in Appendix A under the caption "DEFINITIONS AND SUMMARY OF PRINCIPAL LEGAL DOCUMENTS -- SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE -- Allocation of Revenues". THE BONDS ARE LIMITED OBLIGATIONS OF THE AUTHORITY PAYABLE SOLELY FROM AND SECURED SOLELY BY THE REVENUES PLEDGED THEREFOR IN THE INDENTURE. THE BONDS ARE NOT A DEBT OF THE CITY, THE STATE OF CALIFORNIA OR ANY OF ITS POLITICAL SUBDIVISIONS AND NEITHER THE FAITH AND CREDIT OF THE CITY, THE STATE OR ANY OF ITS POLITICAL SUBDIVISIONS (OTHER THAN THE AUTHORITY) ARE PLEDGED TO THE PAYMENT OF PRINCIPAL OR INTEREST ON THE BONDS, AND NEITHER THE CITY, THE STATE NOR ANY OF ITS POLITICAL SUBDIVISIONS IS LIABLE THEREFOR. NEITHER THE BONDS NOR THE OBLIGATION OF THE CITY TO MAKE BASE RENTAL PAYMENTS CONSTITUTES AN INDEBTEDNESS OF THE CITY, THE STATE OR ANY POLITICAL SUBDIVISION THEREOF IN CONTRAVENTION OF ANY CONSTITUTIONAL OR STATUTORY DEBT LIMITATION OR RESTRICTION. The Lease Base Rental The City has covenanted in the Lease that it will make Base Rental payments which are calculated to be at least sufficient to meet debt service requirements on the Bonds due on each Interest Payment Date payable on the fifteenth day of the month immediately preceding each Interest Payment Date. The City has covenanted in the Lease to take such action as may be necessary to include in its annual budgets, and to make the necessary annual appropriation to meet, all Base Rental payments under the Lease during each City Fiscal Year. The obligation of the City to make Base Rental Payments is not a debt of the City and is payable only from funds legally available therefor, including amounts on deposit in the general fund of the City. Under California law, the obligation of the City to make Base Rental payments is contingent upon the availability of the Leased Property for use and occupancy by the City. Accordingly, the Base Rental payments will be abated proportionately during any period in which, by reason of damage, destruction or condemnation, there is substantial interference with the use and occupancy of the Leased Property by the City, and such abatement shall continue for the period commencing with such damage or destruction and ending with completion by the City, as agent of the Authority, of the work of repair or reconstruction. See the caption "SECURITY FOR THE BONDS -- The Lease--Abatement". Any abatement of Base Rental payments could affect the Authority's ability to pay debt service on the Bonds. The Lease requires the City to maintain a variety of insurance more fully described under the caption "SECURITY FOR THE BONDS -- The Lease -- Insurance", including use and occupancy insurance with respect to certain insured risks, in an amount equal to twenty-four (24) months of Base Rental (but such risks may not include lost use and occupancy resulting from an earthquake). See the caption "SECURITY FOR THE BONDS -- The Lease --Insurance" and APPENDIX A under the caption 'DEFINITIONS AND SUMMARY OF PRINCIPAL LEGAL DOCUMENTS -- SUMMARY OF CERTAIN PROVISIONS OF THE LEASE -- Insurance". Abatement Except to the extent of amounts legally available to the City for payments under the Lease and except as otherwise specifically provided in the Lease with respect to use and occupancy insurance proceeds and amounts on deposit in the Revenue Fund, 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 Ipased Property, rental payments due under the Lease will be abated proportionately by an amount such that the portion of Base Rental remaining unabated represents the fair rental value of the re 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 the Lease will not be considered an event of default as g 11