Common use of Pledge of State of California; Certificates and Notes Not Clause in Contracts

Pledge of State of California; Certificates and Notes Not. Obligation of State of California, Originator, or Seller. (a) The Originator -------------------------------------------------------- hereby finds and determines, and hereby represents and warrants, that the Trust constitutes a "special purpose trust" under Section 63010 of the California Government Code and a "financing entity" under Section 840 of the PU Code, and that the Certificates constitute "rate reduction bonds" under Section 840 of the PU Code and that the Holders of the Certificates are entitled to the rights and benefits thereunder. Pursuant to Section 841(c) of the PU Code, the Originator, on behalf of the State of California, does hereby pledge and agree with the Note Issuer, the Trust and the Holders of the Certificates that the State of California shall neither limit nor alter the FTA Charges, the Transition Property, or the Financing Order or Advice Letters relating thereto, and all rights thereunder, until the Certificates, together with the interest thereon, are fully paid and discharged, provided nothing contained in this Section shall preclude such limitation or alteration if and when adequate provision shall be made by law for the protection of the Note Issuer, the Trustee and the Holders (the "State Pledge"). Further, the Originator does hereby pledge and agree with the Note Issuer, the Trust and the Holders of the Certificates that the Originator will not act in a manner inconsistent with the State Pledge and will not take any action that would impair any rights of the Note Issuer, the Trust or the Holders of the Certificates in the Notes, the Transition Property or the Certificates. The Originator hereby further agrees to treat the Notes as debt of the Note Issuer secured by, among other things, the Transition Property and the equity of the Note Issuer on deposit in the Capital Subaccount for all purposes. (b) Each Certificate represents a fractional undivided beneficial interest in a corresponding Series or Class of Notes and the proceeds thereof, together with payments made on any related Swap. The Certificates do not represent an interest in or obligation of the State of California, the Originator, any other governmental agency or instrumentality or the Seller or any of its affiliates. None of the Certificates, the Notes or the underlying Transition Property will be guaranteed or insured by the State of California, the Originator, the Trust or any other governmental agency or instrumentality or by the Seller or its affiliates. Neither the full faith and credit nor the taxing power of the State of California, the Originator or any other governmental agency or instrumentality is pledged to the payment of the principal, purchase price of, or interest on, the Certificates or the Notes, or to the payments in respect of the Transition Property, nor is the State of California, the Originator or any other governmental agency or instrumentality in any manner obligated to make any appropriation for the payment thereof.

Pledge of State of California; Certificates and Notes Not. Obligation of State of California, Originator, or Seller. (a) The Originator -------------------------------------------------------- hereby finds and determines, and hereby represents and warrants, that the Trust constitutes a "special purpose trust" under Section 63010 of the California Government Code and a "financing entity" under Section 840 of the PU Code, and that the Certificates constitute "rate reduction bonds" under Section 840 of the PU Code and that the Holders of the Certificates are entitled to the rights and benefits thereunder. Pursuant to Section 841(c) of the PU Code, the Originator, on behalf of the State of California, does hereby pledge and agree with the Note Issuer, the Trust and the Holders of the Certificates that the State of California shall neither limit nor alter the FTA Charges, the Transition Property, or the Financing Order or Advice Letters relating thereto, and all rights thereunder, until the Certificates, together with the interest thereon, are fully paid met and discharged, provided nothing contained in this Section shall preclude such limitation or alteration if and when adequate provision shall be made by law for the protection of the Note Issuer, the Trustee and the Holders (the "State Pledge"). Further, the Originator does hereby pledge and agree with the Note Issuer, the Trust and the Holders of the Certificates that the Originator will not act in a manner inconsistent with the State Pledge and will not take any action that would impair any rights of the Note Issuer, the Trust or the Holders of the Certificates in the Notes, the Transition Property or the Certificates. The Originator hereby further agrees to treat the Notes as debt of the Note Issuer secured by, among other things, the Transition Property and the equity of the Note Issuer on deposit in the Capital Subaccount for all purposes. (b) Each Certificate represents a fractional undivided beneficial interest in a corresponding Series or Class of Notes and the proceeds thereof, together with payments made on any related Swap. The Certificates do not represent an interest in or obligation of the State of California, the Originator, any other governmental agency or instrumentality or the Seller or any of its affiliates. None of the Certificates, the Notes or the underlying Transition Property will be guaranteed or insured by the State of California, the Originator, the Trust or any other governmental agency or instrumentality or by the Seller or its affiliates. Neither the full faith and credit nor the taxing power of the State of California, the Originator or any other governmental agency or instrumentality is pledged to the payment of the principal, purchase price of, or interest on, the Certificates or the Notes, or to the payments in respect of the Transition Property, nor is the State of California, the Originator or any other governmental agency or instrumentality in any manner obligated to make any appropriation for the payment thereof.

Pledge of State of California; Certificates and Notes Not. Obligation of State of California, Originator, or Seller. (a) The Originator -------------------------------------------------------- hereby finds and determines, and hereby represents and warrants, that the Trust constitutes a "special purpose trust" under Section 63010 of the California Government Code and a "financing entity" under Section 840 of the PU Code, and that the Certificates constitute "rate reduction bonds" under Section 840 of the PU Code and that the Holders of the Certificates are entitled to the rights and benefits thereunder. Pursuant to Section 841(c) of the PU Code, the Originator, on behalf of the State of California, does hereby pledge and agree with the Note Issuer, the Trust and the Holders of the Certificates that the State of California shall neither limit nor alter the FTA Charges, the Transition Property, or the Financing Order or Advice Letters relating thereto, and all rights thereunder, until the Certificates, together with the interest thereon, are fully paid met and discharged, provided nothing contained in this Section shall preclude such limitation or alteration if and when adequate provision shall be made by law for the protection of the Note Issuer, the Trustee and the Holders (the "State Pledge"). Further, the Originator does hereby pledge and agree with the Note Issuer, the Trust and the Holders of the Certificates that the Originator will not act in a manner inconsistent with the State Pledge and will not take any action that would impair any rights of the Note Issuer, the Trust or the Holders of the Certificates in the Notes, the Transition Property or the Certificates. The Originator hereby further agrees to treat the Notes as debt of the Note Issuer secured by, among other things, the Transition Property and the equity of the Note Issuer on deposit in the Capital Subaccount for all purposes. (b) Each Certificate represents a fractional undivided beneficial interest in a corresponding Series or Class of Notes and the proceeds thereof, together with payments made on any related Swapas set forth herein. The Certificates do not represent an interest in or obligation of the State of California, the Originator, any other governmental agency or instrumentality or the Seller or any of its affiliates. None of the Certificates, the Notes or the underlying Transition Property will be guaranteed or insured by the State of California, the Originator, the Trust or any other governmental agency or instrumentality or by the Seller or its affiliates. Neither the full faith and credit nor the taxing power of the State of California, the Originator or any other governmental agency or instrumentality is pledged to the payment of the principalprincipal of, premium, if any, purchase price of, or interest on, the Certificates or the Notes, or to the payments in respect of the Transition Property, nor is the State of California, the Originator or any other governmental agency or instrumentality in any manner obligated to make any appropriation for the payment thereof.