Common use of Security and Pledge Clause in Contracts

Security and Pledge. To provide security for the payment of the principal of and interest on the Notes, the Bank Note and any other amounts due under this Agreement as the same shall become due and payable, the Authority has granted a lien on and pledge of (subject only to the provisions of the Resolution permitting the application thereof for purposes and on the terms and conditions set forth therein): (i) the proceeds from (A) the sale of the Refunding Notes and other Notes from time to time hereafter issued and to be used to pay outstanding principal amounts of the Notes or the Bank Note and (B) the sale of general obligation bonds issued by the Authority from time to time hereafter for the purpose of paying the outstanding principal amounts of or interest on the Notes or the Bank Note, (ii) borrowings under this Agreement, (iii) amounts held in the Note Payment Account or the Project Fund (as defined in the Resolution) after use for authorized purposes set forth in Section 2.01 of the Resolution) and (iv) the funds available pursuant to the Constitutional Provisions.