Common use of State Pledge Clause in Contracts

State Pledge. (a) Recovery Bonds are “recovery bonds” as such term is defined in the Act. Principal and interest due and payable on the Recovery Bonds are payable from and secured primarily by Recovery Property created and established by the Financing Order obtained from the New York Public Service Commission pursuant to the Act. Recovery Property consists of the property rights created pursuant to the Act, including but not limited to any and all right, title and interest (i) in and to the Recovery Charges established pursuant to the Financing Order, as approved by the NYPSC and adjusted from time to time in accordance with the Financing Order, (ii) in and to all revenues, collections, claims, payments, money, or proceeds of or arising from the Recovery Charges or constituting Recovery Charges that are the subject of the Financing Order, regardless of whether such revenues, collections, claims, payments, money, or proceeds are imposed, billed, received, collected, or maintained together with or commingled with other revenues, collections, claims, payments, money, or proceeds; and (iii) in and to all rights to obtain periodic adjustments to the Recovery Charges pursuant to the terms of the Financing Order. Under the laws of the State of New York in effect on the Closing Date, the State of New York has pledged for the benefit of the Holders, pursuant to Subsection 1 of Section 9 of the Act, as follows: “The state pledges to and agrees with the holders of recovery bonds, any assignee and all financing parties that the state will not in any way take or permit any action that limits, alters or impairs the value of recovery property or, except as required by a true-up mechanism described in the financing order, reduce, alter or impair recovery charges that are imposed, collected and remitted for the benefit of the owners of recovery bonds, any assignee, and all financing parties, until all principal, interest and redemption premium in respect of recovery bonds, all other financing costs and all amounts to be paid to an assignee or financing party under an ancillary agreement are paid or performed in full.” The Issuer hereby acknowledges that the purchase of any Recovery Bond by a Holder or the purchase of any beneficial interest in a Recovery Bond by any Person and the Indenture Trustee’s obligations to perform hereunder are made in reliance on such agreement and pledge by the State of New York.