Subject to limitations and exceptions described in the indenture, all property acquired by us after the date of the indenture, other than Excepted Property, will be further security as described in the indenture. (See Section 5.09.) In addition, the indenture creates a lien on the Mortgaged Property prior to the lien securing the bonds in order to secure the trustee’s right to compensation, reimbursement and indemnity. (See Sections 5.17, 6.04, 9.26, 14.10 and 14.11.)
Ranking
The bonds of each series will be our secured and unsubordinated obligations and will rank equally in right of payment with all other bonds issued under the indenture. The bonds will rank first in right of payment with respect to proceeds from Mortgaged Property (subject to easements, rights of way, conditions, reservations and restrictions of record, and to the lien of taxes and assessments not delinquent, and also subject to Permissible Encumbrances, purchase money liens, liens existing on property at the time such property was acquired by us, liens resulting from claims and demands of mechanics, laborers and others the validity of which are being contested in good faith and the prior lien securing the trustee’s right to compensation, reimbursement and indemnity), and otherwise will rank equally in right of payment with all of our unsubordinated and unsecured indebtedness, including the senior debt securities. The bonds are Southern California Gas Company’s obligations exclusively, and are not the obligations of any of our consolidated entities (if any), our parent, Sempra or any of our other affiliates.
Payment of Bonds—Principal and Interest
We will pay principal of the bonds at stated maturity, upon redemption or otherwise, upon presentation of the bonds at the office of the trustee, as our paying agent. We will make payments on the bonds in book-entry form to DTC or its nominee, as the registered owner of the bonds, by wire transfer of immediately available funds.
Form; Transfers; Exchanges
Bonds may be issued in denominations of $1,000, $5,000, $10,000, $25,000 or integral multiples of $25,000. Unless otherwise indicated in the applicable prospectus supplement or free writing prospectus, the bonds will be issued in book-entry form and represented by one or more global securities deposited with, or on behalf of, DTC, as depositary, and registered in the name of Cede & Co., its nominee. This means that you will not be entitled to receive a certificate for the bonds in book-entry form that you purchase except under the limited circumstances described below under the caption “Global Securities.”
You will receive payments and may transfer bonds in book-entry form only through the facilities of DTC and its direct and indirect participants as described below under the caption “Global Securities.” We will maintain an office or agency where notices and demands in respect of the bonds and the indenture may be delivered to us and where certificated bonds may be surrendered for payment, registration of transfer or exchange, which will be at the principal office of the trustee, in San Francisco, California, and any other places specified in the applicable prospectus supplement or free writing prospectus. (See Sections 2.01, 2.03 and 2.04.)
There will be no service charge for (i) any registration or transfer or exchange of the bonds, but we may impose a charge sufficient to reimburse us for any tax or governmental charge required to be paid with respect to any such registration or transfer, or (ii) any exchange, but we may charge a sum not exceeding $2 for each bond issued upon any such exchange and a further sum sufficient to reimburse us for any stamp taxes or other governmental charges. We may block the transfer or exchange of bonds for a period of 10 days prior to any interest payment date. (See Sections 2.03 and 2.04)
Optional Redemption
We may redeem at our option at any time or from time to time all or any part of the bonds of any series at the redemption price specified therein for such series of bonds. In the event that we elect to redeem only a
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