This excerpt taken from the AYE 8-K filed Sep 22, 2009.
The Notes are not secured by any lien on our real or personal property.
The Notes are not secured by a mortgage lien and/or security interest in any of our real or personal property. Approximately $268 million aggregate principal amount of tax-exempt bonds are secured by a first priority lien on certain pollution control and solid waste disposal facilities located at certain of our generation facilities. The Notes will be effectively subordinated to any secured indebtedness to the extent of the value of the assets securing such indebtedness. We may also incur additional secured indebtedness, subject to limitations contained in the Indenture. Further, we may, in the future, find it desirable or necessary to incur additional secured indebtedness or other secured obligations, such as for commodity hedge transactions. See Description of Notes and Indenture Certain Covenants Limitation on Liens.