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PAYMENT EXCEPT FROM THE FUNDS PLEDGED THEREFOR. THE ISSUER HAS NO
TAXING POWER.
The Borrower hereby acknowledges that the Issuer’s sole source of money to repay the Bonds will
be provided by the payments made by the Borrower pursuant to this Loan Agreement, and amounts in
certain funds and accounts held by the Trustee under the Indenture, and hereby agrees that if the payments
to be made hereunder shall ever prove insufficient to pay all principal of and interest on the Bonds as the
same shall become due (whether by maturity, redemption, acceleration or otherwise), then upon notice from
the Trustee, the Borrower shall pay such amounts as are required from time to time to prevent any deficiency
or default in the payment of such principal of or interest on the Bonds, including, but not limited to, any
deficiency caused by acts, omissions, nonfeasance or malfeasance on the part of the Trustee, the Borrower,
the Issuer or any third party, subject to any right of reimbursement from the Trustee, the Issuer or any such
third party, as the case may be, therefor.
Section 8.13 Waiver of Personal Liability. No City council member of the City of Newport
News (“City Council Member”) and any member of the Board of Commissioners of the Issuer, or any
officer, official, agent or employee of the Issuer shall be individually or personally liable for the payment
of any principal of or interest on the Bonds or any other sum hereunder or be subject to any personal liability
or accountability by reason of the execution and delivery of this Loan Agreement; but nothing herein
contained shall relieve any such City Council Member, member of the Board of Commissioners of the
Issuer, officers, officials, agents or employees of the Issuer from the performance of any official duty
provided by law or by this Loan Agreement.
Section 8.14 Delivery of Reports, Etc. The delivery of reports, information and documents to
the Issuer as provided herein is for informational purposes only and the Issuer’s receipt of such shall not
constitute constructive knowledge of any information contained therein or determinable from information
contained therein. The Issuer shall have no duties or responsibilities except those that are specifically set
forth herein, and no other duties or obligations shall be implied in this Loan Agreement against the Issuer.
Section 8.15 Audit Expenses. The Borrower agrees to pay any costs incurred by the Issuer,
including fees of Issuer’s counsel, as a result of an audit by the Issuer or the Issuer’s compliance with an
audit or inquiry of any kind, random or otherwise, by the Internal Revenue Service, the Commonwealth of
Virginia Department of Revenue or any other governmental agency with respect to the Bonds or the Project.
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