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and investments in or allocated to the Special Funds; and the income and profit from the investment of the
foregoing moneys.
The Issuer has directed the Trustee to deposit all payments made by the Borrower pursuant to the
Promissory Note and the Loan Agreement into the Bond Fund established and maintained pursuant to the
Indenture. In the event that amounts on deposit in the Bond Fund are insufficient to make the payment of
Bond Debt Service Charges due on the next succeeding Bond Payment Date, Bond Debt Service Charges
shall be payable as they become due, (i) in the first instance from the money on deposit in the Interest
Account or the Remarketing Proceeds Account of the Bond Fund, as applicable, and transferred as
necessary to the Bond Fund, (ii) second, from moneys on deposit in the Collateral Fund and transferred as
necessary to the Bond Fund, and (iii) third, from moneys on deposit in the Project Fund and transferred as
necessary to the Bond Fund. Investment of moneys in the Special Funds will mature or be redeemable at
the times and in the amounts necessary to provide moneys to pay Bond Debt Service Charges on the Bonds
when due or when otherwise required under the Indenture. All investment earnings from amounts on deposit
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
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