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in the Project Fund and the Collateral Fund will be credited to the Interest Account of the Bond Fund. See
“APPENDIX C – SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE – [Investment of
Special Funds][Bond Fund]” attached hereto.
The funds on deposit in the Special Funds will be invested in Eligible Investments. No fees of the
Issuer or the Trustee will be payable from the Issuer Revenues.
THE BONDS ARE LIMITED OBLIGATIONS OF THE ISSUER PAYABLE SOLELY
FROM THE PLEDGED REVENUES (AS DEFINED IN THE INDENTURE) AND FROM OTHER
MONEY PLEDGED UNDER THE INDENTURE. NEITHER THE FAITH AND CREDIT OF THE
COMMONWEALTH OF VIRGINIA (THE “COMMONWEALTH”) NOR THE FAITH AND
CREDIT OF ANY POLITICAL SUBDIVISION THEREOF (INCLUDING THE ISSUER AND
THE CITY OF NEWPORT NEWS, VIRGINIA (THE “CITY”)) ARE PLEDGED TO THE
PAYMENT OF THE PRINCIPAL OF OR THE INTEREST OR PREMIUM, IF ANY, ON THE
BONDS. THE ISSUANCE OF THE BONDS SHALL NOT DIRECTLY OR INDIRECTLY OR
CONTINGENTLY OBLIGATE THE COMMONWEALTH OR ANY POLITICAL SUBDIVISION
THEREOF (INCLUDING THE ISSUER AND THE CITY) TO LEVY ANY TAXES WHATEVER
THEREFOR OR TO MAKE ANY APPROPRIATION FOR THEIR PAYMENT EXCEPT FROM
THE FUNDS PLEDGED THEREFOR. THE ISSUER HAS NO TAXING POWER.
THE TRUSTEE
The information under this heading has been provided solely by the Trustee and has not been
independently verified. No representation whatsoever as to the accuracy, adequacy or completeness of such
information is being made.
The Borrower has appointed U.S. Bank Trust Company, National Association to serve as Trustee.
The Trustee is a non-depository national banking association organized and existing under the laws of the
United States of America, having powers of a bank, including fiduciary powers, and is a member of the
Federal Reserve System. The Trustee is to carry out those duties assignable to it under the Indenture. Except
for the contents of this section, the Trustee has not reviewed or participated in the preparation of this Official
Statement and assumes no responsibility for the nature, contents, accuracy, fairness or completeness of the
information set forth in this Official Statement or for the recitals contained in the Indenture or the Bonds,
or for the validity, sufficiency, or legal effect of any such documents.
Furthermore, the Trustee has no oversight responsibility, and is not accountable, for the use or
application by the Issuer of any of the Bonds authenticated or delivered pursuant to the Indenture or for the
use or application of the proceeds of such Bonds by the Issuer. The Trustee has not evaluated the risks,
benefits, or propriety of any investment in the Bonds and makes no representation, and has reached no
conclusions, regarding the value or condition of any assets or revenues pledged or assigned as security for
the Bonds, or the investment quality of the Bonds, about all of which the Trustee expresses no opinion and
expressly disclaims the expertise to evaluate.
CERTAIN BONDHOLDERS’ RISKS
The following is a summary of certain risks associated with a purchase of the Bonds. There are
other possible risks not discussed below. The Bonds are payable from the payments to be made by the
Borrower under the Loan Agreement and the Promissory Note, and from amounts on deposit in the Special
Funds and the interest earnings thereon. The Borrower’s obligation to make payments pursuant to the Loan
Agreement and the Promissory Note are nonrecourse obligations with respect to which the Borrower and
its partners have no personal liability (except as otherwise provided in the Promissory Note) and as to
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