(a) In order to provide money to finance the development cost of each permanently financed project and to refund, renew, extend or substitute for any permanent notes authorized by this chapter to be issued (or any permanent notes authorized by any other ordinance to be issued and which are outstanding, or on deposit for delivery pending payment therefor, as of the date this chapter becomes effective), or for any temporary notes issued by the borrower in anticipation of the delivery of permanent notes, there are hereby authorized to be issued, from time to time, permanent notes of the City in an aggregate principal amount outstanding at any one time (whether authorized by this chapter or by any other ordinance authorizing the issuance of permanent notes) equal to the maximum development cost (or the actual development cost if such amount has then been determined) of each such project, less the sum of the principal amount of bonds issued to finance such development cost and the principal amount of permanent notes or temporary notes issued to finance such development cost, and which has then been retired from funds other than the proceeds of any loan obtained by the borrower.
(b) Each permanent note shall bear interest and shall be payable in the form and manner as prescribed by the annual contributions contract and this chapter; shall be signed in the name of the borrower by the Mayor; shall have the official seal of the borrower impressed thereon, attested by the City Clerk; and shall otherwise be in substantially the form set forth in subsections (c) and (d) hereof.
(c) Each permanent note, together with all other permanent notes issued pursuant to this chapter, shall be secured by a first pledge of the annual contributions payable to the borrower and authorized to be pledged to such payment pursuant to the annual contributions contract, and by a pledge of and lien on the residual receipts of all permanently financed projects after providing for the payment of the bonds. In no event shall any permanent note be payable out of other funds of the borrower or from taxes.
(d) As additional security for the equal and ratable payment of the principal of and interest on each permanent note issued with respect to any permanently financed project, together with each other permanent note issued with respect to such project, the borrower, to the fullest extent permitted by the laws of the State, pledges, mortgages, conveys and grants unto the United States of America all property described in Section 312 of the annual contributions contract constituting such permanently financed project, including that certain real property relating to each such project and more particularly described in the trust instrument, or any amendment thereto, as executed and recorded by the borrower pursuant to Section 420(B) of the annual contributions contract. However, the lien of such pledge and mortgage and the rights granted and conveyed pursuant to this subsection shall be junior to the bonds and junior to the pledge of residual receipts securing the bonds, and shall not be foreclosable until all bonds have been paid and discharged in the manner provided in the bond ordinances. If the preceding sentence is adjudged by a court of competent jurisdiction to be invalid or ineffective, it is the intention of the borrower to be fully obligated under the other provisions of this chapter, and such judgment shall not impair or invalidate the obligation of the borrower to pay the principal of and interest on each permanent note from other funds of the borrower as herein provided.
(1979 Code Sec. 4.04.030)