Agenda - Council - 11/25/1981 - Laserfiche WebLink

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I I I I I I I I I I I I I I I I and proceeds are hereby specifically pledged to the payment thereof in the manner and to the extent specified in the Note, Loan Agreement, the Mortgage and the Assignment of Leases and Rents; and nothing in the Note or in this Resolution shall be considered as assigning, pledging or otherwise encumbering any other funds or assets of the City. Section 402. Performance of and Authority for Covenants The City covenants that it will faithfully perform at all times any and all covenants, undertakings, stipulations and provisions contained in this Resolution, in the Note, and in all proceedings of the City Council pertaining thereto; that it is duly authorized under the Constitution and laws of the State of Minnesota including particularly and without limitation the Act, to issue the Note, pledge the revenues and assign the Loan Agree- ment in the manner and to the extent set forth in this Resolution, the Note and the Loan Agreement; that all action on its part for the issuance of the Note and for the execution and delivery there- of has been duly and effectively taken; and that the Note in the hands of the Lender is and will be a valid and enforceable obliga- tion of the City according to the terms thereof. Section 403. Enforcement and Performance of Covenants The City agrees to enforce all covenants and obligations of the Borrower under the Loan Agreement and the Disbursing Agree- ment, and to perform all covenants and other provisions contained in the Note, the Loan Agreement and the Disbursing Agreement. Section 404. Nature of Security Notwithstanding anything contained in the Note, the Mort- gage, the Assignment of Leases and Rents, the Loan Agreement or any other document referred to in Section 211 to the contrary, under the provisions of the Act, the Note may not be payable from or be a charge upon any funds of the City other than the revenues and proceeds pledged to the payment thereof, nor shall the City be subject to any liability thereon, nor shall the Note otherwise contribute or give rise to a pecuniary liability of the City or, to the extent permitted by law, any of the City's officers, employee~ and agents. No holder of the Note shall ever have the right to compel any exercise of taxing power of the City to pay the Note or the interest thereon or to enforce payment thereof against any property of the City; and the Note shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City; and the Note shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation; but nothing in the Act impairs the rights of the Mort- gagee to enforce the covenants made for the security thereof as provided in this Resolution, the Loan Agreement, the Mortgage, the Assignment of Leases and Rents and in the Act, and by authority of the Act, the City has made the covenants and agreements herein for 14