Preliminary Official Statement (1996)

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Any Bond may be exchanged at the corporate trust office of the Trustee in Los Angeles, California, for a like aggregate principal amount of Bonds of other authorized denominations and of like maturity. Exchange of any Bond shall not be permitted during the period established by the Trustee for selection of Bonds for redemption or if such Bond has been selected for redemption pursuant to the Indenture. The Trustee may require the Bond owner requesting such exchange to pay any tax or other governmental charge required to be paid with respect to such exchange. The foregoing provisions relating to the transfer and exchange of Bonds are not applicable to the transfer and exchange of any Beneficial Owner's interests in the Bonds so long as the Bonds are held in the book-entry system described above. Bonds Mutilated, Lost, Destroyed or Stolen If any Bond shall become mutilated, the Authority, at the expense of the registered owner of said Bond, shall execute, and the Trustee shall thereupon authenticate and deliver, a new Bond of like tenor in exchange and substitution for the Bond so mutilated, but only upon surrender to the Trustee of the Bond so mutilated. Every mutilated Bond so surrendered to the Trustee must be canceled by it and destroyed. If any Bond is lost, destroyed or stolen, evidence of such loss, destruction or theft may be submitted to the Authority and the Trustee and, if such evidence is satisfactory to them and indemnity satisfactory to them shall be given, the Authority, at the expense of the owner of such lost, destroyed or stolen Bond, shall execute, and the Trustee shall thereupon authenticate and deliver, a new Bond of like tenor in lieu of and in substitution for the Bond so lost, destroyed or stolen (or if any such Bond shall have matured or shall have been called for redemption, instead of issuing a substitute Bond,the Trustee may pay the same without surrender thereof upon receipt of indemnity satisfactory to the Trustee). The Authority may require payment by the owner of a sum not exceeding the actual cost preparing each new Bond issued under the Indenture and of the expenses which may be incurred by the Authority and the Trustee in the preparation, execution, authentication and delivery thereof. Any Bond issued in lieu of any Bond alleged to be lost, destroyed or stolen will constitute an original additional contractual obligation on the part of the Authority whether or not the Bond so alleged to be lost, destroyed or stolen be at any time enforceable by anyone, and shall be entitled to the benefits of the Indenture with all'other Bonds secured by the Indenture. SECURITY FOR THE BONDS Lease Payments The Bonds are special obligations of the Authority payable from revenues pledged under the Indenture, consisting primarily of Lease Payments, and from certain funds held under the Indenture. Lease Payments are to be made by the Members from yearly appropriations which are payable out of any source of legally available funds. The Members have covenanted under their respective Lease Agreements to make such yearly appropriations. See "Covenant to Budget and Appropriate" below and "APPENDIX A - Summary of Principal Legal Documents - Lease Agreements" herein. The Lease Payments to be made by each Member are subject to abatement during any period in which the Leased Premises are not available to such Member for use and occupancy due to damage or destruction, as described herein under "RISK FACTORS -Abatement." Neither the full faith and credit nor the taxing power of the Members, the County or the State is pledged to the payment of the Bonds or the Lease Payments. The Authority has no taxing power. The Authority has assigned its right under each Lease Agreement to receive Lease Payments and other amounts payable thereunder to the Trustee for the benefit of the owners of the Bonds. 7