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The Leased Property is required to be insured to the extent described in Ap£endix C hereto under "SUMMARY OF THE LEASE -- Property and Casualty Insurance" and "-- Public Liability Insurance." All Net Proceeds from policies of insurance or condemnation awards which are received by the Trustee are required to be deposited into the Insurance Fund under the Indenture. If such Net Proceeds are sufficient to repair, restore, modify, improve or replace the affected portion of the Leased Property, such Net Proceeds are to be so applied. If such Net Proceeds are insufficient to pay in full the cost of any such repair, restoration, modification, improvement or replacement, the City must, within 90 days after the occurrence of the event giving rise to such Net Proceeds, take one of the following actions: (1) Commence and thereafter complete the work and pay any cost in excess of the Net Proceeds, in which case the City is not entitled to any reimbursement therefor from the Trustee or the Owners of the Certificates, nor is the City entitled to any diminution of the Base Rentals or Supplemental Rent; (2) If the failure to repair or restore does not materially detract from the value of the Leased ProPerty, then the City may discharge its obligation to repair or replace the Leased Property by causing such Net Proceeds and other money to be deposited into the Certificate Payment Fund to be used for the purposes of such Fund pursuant to the Indenture; or (3) Apply such Net Proceeds to the purchase of the Trustee's interest in the Leased Property, the City being required to pay the amount of any deficiency of the amount of Net Proceeds for such purpose and being entitled to retain any excess of such Net Proceeds. Additional Parity Obligations Additional Certificates may be issued under and be equally and ratably secured by the Indenture on a parity with the Certificates and any other Additional Certificates Outstanding, at any time and from time to time while no Event of Default or Event of Nonappropriation has occurred and is continuing under the Indenture, with the written consent of the City, upon compliance with the conditions provided in the Indenture. See "SUMMARY OF THE INDENTURE -- Additional Certificates" in Appendix C hereto. Pursuant to the Indenture, Additional Certificates may be issued for any one or more of the following purposes: (1) to provide funds to complete the Project or to pay all or any part of the costs of any Additional Project; (2) to provide funds to pay the costs relating to the execution and delivery of the Additional Certificates; (3) to provide funds to pay interest during the estimated period of acquisition and construction of any Additional Project; or (4) to provide funds for the purpose of refunding all or a portion of the Certificates of any series then Outstanding, including the payment of any premium thereon and interest to accrue to the designated prepayment date and any expenses in connection with such refunding. The Certificate Insurance Policy Concurrently with the issuance of the Certificates, the Certificate Insurer will issue the Certificate Insurance Policy for the Certificates. The Certificate Insurance Policy guarantees the scheduled payment of principal of and interest on the Certificates when due as set forth in the form of the Certificate Insurance Policy included as Appendix E to this Official Statement. See the section herein captioned "CERTIFICATE INSURANCE." -10-