6097 (EXHIBIT A - E) (2) - Laserfiche WebLink

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rates, have such payment date or dates, prepayment dates and prepayment premiums, and be issued at such prices as are approved in writing by the City, subject to the requirements of the Indenture. RISK FACTORS AND INVESTMENT CONSIDERATIONS The purchase of the Certificates involves certain investment risks that are discussed throughout this Official Statement. Each prospective purchaser of the Certificates shouM make an independent evaluation of all of the information presented in this Official Statement in order to make an informed investment decision. Certain risk factors relating to the Certificates are described below. Limited Obligations The Certificates are payable from amounts due under the Lease, which constitute currently budgeted expenditures of the City, payable only if the City Council appropriates sufficient money to extend the term of the Lease for each successive fiscal year. The Initial Term of the Lease commences as of February 1, 1997, and expires on June 30, 1997. The Lease is thereafter subject to 19 successive one-year Renewal Terms commencing on July 1 of each year, with a final renewal term commencing July 1, 2016 and ending February 2, 2017. The City's obligations under the Lease do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction. Although the City intends to satisfy its obligations to pay Base Rentals out of the revenues to be generated from the Project, such revenues are not pledged to the payment of the Certificates. The City Council has declared its current intention and expectation that the Lease will be renewed annually until the City exercises its option to acquire the Trustee's interest in the Leased Property. However, such a declaration may not be construed as contractually obligating or otherwise binding the City. Accordingly, the likelihood that the City will renew the Lease for all Renewal Terms and continue to pay the Base Rentals thereunder to enable the Trustee to timely pay the principal and interest component of Base Rentals distributable with respect to the Certificates is dependent upon certain factors which are beyond the control of the Owners, including (1) the availability of funds from the Certificates or other sources in an amount sufficient to complete the Project, (2) the City's continuing need for the Leased Property, (3) the demographic conditions within the City, (4) the City's ability to generate sufficient funds from the Project, property taxes, sales taxes, utility fees and charges and other sources to pay its obligations under the Lease and its other obligations and (5) the value of the Leased Property if relet or sold in a foreclosure or other liquidation proceeding instituted by the Trustee if the term of the Lease is terminated as a result of an Event of Default or Event of Nonappropriation. Expiration or Termination of the Lease The Lease will expire by its terms on June 30 during each year from 1997 through 2016, with a final Lease expiration date of February 2, 2017, unless the City in its sole discretion exercises the option provided in the Lease to extend its term for each next succeeding Renewal Term. If the City does not extend in any year the term of the Lease, the City's obligation to make Payments will terminate on the June 30 occurring at the end of the Initial Term or the then current Renewal Term. Upon (1) the expiration of the Initial Term or any Renewal Term during which an Event of Nonappropriation occurs (which is not waived by the Trustee as provided in the Lease) or (2) a default under the Lease and an election by the Trustee to terminate the City's possessory interest under the Lease, the City's right of possession of the Leased Property under the Lease will expire or be terminated, as appropriate. See "SUMMARY OF CERTAIN PROVISIONS OF THE LEASE -- Events of Default" and "-- Remedies on Default" in Appendix.d hereto. -11-