21 ATTACHMENT 3 - Laserfiche WebLink

14 SECURITY FOR THE 2021 BONDS Pledge Under the Indenture General. The 2021 Bonds are special limited obligations of LAVWMA payable solely from LAVWMA Net Revenues. LAVWMA Net Revenues are defined as the “LAVWMA Gross Revenues” received by LAVWMA less LAVWMA Maintenance and Operation Costs. The 2021 Bonds are secured by a pledge of the portion of LAVWMA Net Revenues needed to pay debt service on the Bonds (including the 2021 Bonds and any Parity Bonds). Definitions. The Indenture defines the following terms: “LAVWMA Gross Revenues” are defined in the Indenture as, for any period of computation, all amounts received for, and all other income and revenues derived by LAVWMA from, the ownership or operation of the LAVWMA Enterprise, or otherwise arising from the LAVWMA Enterprise during such period, including but not limited to (a) all amounts received by LAVWMA from the Members under the Sewer Service Contract (see “- Sewer Service Contract” below) and the Regional Agreement (see “DUBLIN SAN RAMON SERVICES DISTRICT – Regional Agreement”) for disposal or reuse of the Members’ wastewater, (b) all receipts derived from the investment of funds held by the Treasurer or the Trustee under the Indenture, and (c) all moneys received by LAVWMA in connection with the LAVWMA Enterprise. “LAVWMA Maintenance and Operation Costs” are defined in the Indenture as, for any given period for any given facilities of the LAVWMA Enterprise, the reasonable and necessary costs of LAVWMA in maintaining and operating such facilities during such period, calculated on sound accounting principles, including (among other things) the reasonable expenses of management and repair and other expenses necessary to maintain and preserve such facilities in good repair and working order, and reasonable amounts for administration, overhead, insurance, taxes (if any) and other similar costs, but excluding in all cases depreciation, replacement and obsolescence charges or reserves therefor, debt service, amortization of intangibles or other bookkeeping entries of a similar nature, and costs paid out of the Sole Use Replacement Fund, Dual Use Replacement Fund and Joint Use Replacement Fund (as those terms are defined in the Sewer Service Contract). For the avoidance of doubt, LAVWMA Maintenance and Operation Costs include payments made by LAVWMA to EBDA under the EBDA Master Agreement. Assignment by LAVWMA to the Trustee. Under the Indenture, LAVWMA assigns to the Trustee, for the benefit of the Owners of the Bonds (i.e., the 2021 Bonds and any Parity Bonds), that portion of the LAVWMA Net Revenues which is necessary to pay the principal or redemption price of and interest on the Bonds in any fiscal year, together with all moneys on deposit in the Debt Service Fund, and such portion of the LAVWMA Net Revenues is irrevocably pledged to the punctual payment of the principal or redemption price of and interest on the Bonds. The LAVWMA Net Revenues pledged under the Indenture are not permitted to be used for any other purpose while any of the Bonds remain Outstanding, except that out of LAVWMA Net Revenues there may be apportioned and paid such sums for such purposes, as are expressly permitted by the Indenture. Limited Obligation. The 2021 Bonds are special, limited obligations of LAVWMA, and are only secured by a pledge of LAVWMA Net Revenues. LAVWMA’s obligation to pay debt