Opinion ID: 1709084
Heading Depth: 1
Heading Rank: 3

Heading: Mortgage and Deed of Trust

Text: The City will enter into a mortgage and deed of trust with a corporate trustee as security for the revenue bonds that the City will issue to pay the costs of constructing the project. In the mortgage and deed of trust the City conveys to the trustee thereunder the project lease, the City's interest under the ground lease, and all revenues that will be derived by the City from the project. The bonds are payable solely out of the revenues derived by the City from the leasing and operation of the project, and provide on their face that the covenants on the part of the City in the bonds and in the mortgage and deed of trust shall never constitute a personal or pecuniary liability or charge against the general credit of the City, that in the event of breach of any such covenant the liability of the City therefor shall be limited to the revenues derived from the project, that no holder of the bonds shall ever have a right to compel the exercise of the taxing power of the City or the use of any funds other than those derived from the project for payment of the principal of or interest on the bonds, and that the bonds shall not constitute a debt of the City within the meaning of any State constitutional or statutory provision. A similar limitation of liability is contained in the mortgage and deed of trust.