The Bank Notes the Advances, the Revolving Loans and the Term Loans are revenue obligations and shall be payable as to both principal and interest from and the Department hereby grants a pledge of and lien on, the Revenues to secure the Bank Notes, the Advances, the Revolving Loans and the Term Loans on a parity with the Parity Obligations. The Revenues constitute a trust fund for the security and payment of the interest on and principal of the Bank Notes, the Advances, the Revolving Loans and the Term Loans and all obligations of the Department relating to the Bank Notes, the Advances, the Revolving Loans and the Term Loans hereunder and all Parity Obligations in accordance with the terms of the Indenture and the Parity Revenue Bond Indentures. The pledge of Revenues herein made is irrevocable until all of the Bank Notes, the Advances, the Revolving Loans and the Term Loans have been paid and retired and all obligations of the Department under this Agreement and the Bank Notes have been satisfied in full. The Department shall allocate the Revenues to the payment of costs of Operation and Maintenance and to the payment of the Parity Obligations, including the Bank Notes, the Advances, the Revolving Loans and the Term Loans, as set forth in Section 4.02 of the Indenture and Section [5.02] of each of the Parity Revenue Bond Indentures.
The Bank Notes the Advances, the Revolving Loans and the Term Loans evidenced thereby and all other obligations of the Department to the Bank hereunder are secured by a lien on and pledge of Revenues. The pledge of the Revenues hereunder securing the Bank Notes, the Advances, the Revolving Loans and Term Loans is a valid and binding obligation of the Department, on a pari passu basis with the holders of all Parity Obligations, subject to any applicable bankruptcy, insolvency, debt adjustment, moratorium, reorganization or other similar laws, judicial decisions and principles of equity relating to or affecting creditors’ rights or contractual obligations generally or limitations of remedies against public entities in California. No filing, registration, recording or publication of the Indenture, this Agreement or any other instrument nor any prior separation or physical delivery of the Revenues is required to establish the pledge provided for under this Agreement or to perfect, protect or maintain the lien created thereby on the Revenues to secure the Bank Notes, the Advances, the Revolving Loans and the Term Loans evidenced thereby. As of the date of this Agreement, the Department has not incurred, created or assumed any Indebtedness that is senior in right of payment to the Bank Notes, the Advances, the Revolving Loans and the Term Loans evidenced thereby. As of the date of this Agreement, except for the Parity Obligations, the Department has not incurred, created or assumed Indebtedness that is on parity with the Bank Notes, the Advances, the Revolving Loans and the Term Loans. The provisions of this Agreement constitute a contract between the Department and the Bank.
The Bank Notes
