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accuracy or sufficiency of such information or of the disclosure practices of the Initial Credit Facility Issuer. The ~: summaries of and references to all documents, statutes and other instruments referred to in this Official Statement do not purport to be complete and are qualified in their entirety by reference to the full text of each such document, statute or instrument. The information contained herein is qualified by and subject to the provisions of the book- . entry-only system for so long as Bonds are issued under the book-entry system. All capitalized terms used herein which are not otherwise defined have the meanings set forth in Appendix E herein. RISK FACTORS Investment in the Bonds involves certain risks. In addition to the factors set forth elsewhere in this Official Statement, prospective purchasers of the Bonds should carefully consider the following risk factors: 1. The principal of and up to 57 days' accrued interest on the Bonds are payable from and secured by the Initial Credit Facility. The ability of the Initial Credit Facility Issuer to satisfy its obligations under the Initial Credit Facility may be impaired in the event of a deterioration of the financial condition of the Initial Credit Facility Issuer, as the Initial Credit Facility represents a general claim against the assets of the Initial Credit Facility Issuer. In the event of the insolvency of the Initial Credit Facility Issuer, or the occurrence of some other event precluding it from honoring its obligations under the Initial Credit Facility, the funds of the Authority which may be used to pay debt service on the Bonds might not be sufficient to pay such debt service.' Scheduled lease rental payments are not sufficient in all circumstances to pay debt service on the bonds. 2. The Initial Credit Facility will expire on , 1999, unless extended or replaced. The Authority is not obligated to maintain the Initial Credit Facility or any Alternate Credit Facility after. expiration of the Initial Credit Facility. However, all Bonds will be subject to mandatory purchase unless a Renewal Credit Facility or an Alternate Credit Facility has been delivered. • 3. Enforcement of remedies provided in the Indenture with respect to payments to be made by the Initial Credit Facility Issuer under the Initial Credit Facility may be limited by bankruptcy or other laws relating to creditors' rights generally in the event of insolvency or liquidation of the Initial Credit Facility Issuer. In addition, performance by the Initial Credit Facility Issuer of its obligations under the Initial Credit Facility is subject to the satisfaction of certain conditions by the Trustee, as set forth in the Initial Credit Facility. Bondholders are thus dependent upon the Trustee's acting to satisfy such conditions before they will receive the benefit of the Initial Credit Facility. 4. The Initial Credit Facility Issuer has not entered into any contractual commitment to provide owners of Bonds with any information on a continuing basis. BOOK-ENTRY-ONLY SYSTEM The Depository Trust Company ("DTC"), New York, New York, will act as securities depository for the Bonds. The Bonds will beissued asfully-registered securities in the name of Cede & Co. (DTC's partnership nominee). One fully-registered Bond will be issued and deposited with DTC. DTC is alimited-purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds securities that its participants ("Participants") deposit with DTC. DTC also facilitates the settlement among Participants of securities transactions, such as transfers and pledges, in deposited securities through electronic computerized book- ~~ entry changes in Participants' accounts, thereby eliminating the need for physical movement of securities certificates. Direct Participants include securities brokers and dealers, banks, trust companies, clearing. corporations, and certain ~~ other organizations ("Direct Participants"). DTC is owned by a number of its Direct Participants and by the New -3-