|
ARTICLE IV
<br /> GENERAL COVENANTS
<br /> SECTION 4.1. Payment of Principal, Premium, if Any, and Interest. The Issuer
<br /> covenants that it will promptly pay or cause to be paid the principal of, premium, if any, and
<br /> interest on every Bond issued under this Indenture at the place, on the dates and in the manner
<br /> provided herein and in said Bonds according to the true intent and meaning thereof, but solely
<br /> from the Trust Estate, including amounts paid upon an Event of Default and pursuant to action
<br /> taken under the Mortgage. The principal of,premium, if any, and interest on the Bonds (except to
<br /> the extent paid out of money attributable to the proceeds derived from the sale of the Bonds or to
<br /> income from the temporary investment thereof and,under certain circumstances,to proceeds from
<br /> insurance and condemnation awards) are payable solely from the amounts to be paid under the
<br /> Loan Agreement and otherwise as provided herein and in the Loan Agreement and, under the
<br /> Mortgage, pursuant to its terms, and the amounts under the Loan Agreement are hereby
<br /> specifically pledged to the payment thereof in the manner and to the extent herein specified, and
<br /> nothing in the Bonds or in this Indenture shall be construed as pledging any other funds or assets
<br /> of the Issuer. Neither the State nor the Issuer nor any other political subdivision of the State shall
<br /> in any event be liable for the payment of the principal of, premium, if any, or interest on any of
<br /> the Bonds or for the performance of any pledge, obligation or agreement undertaken by the Issuer
<br /> except to the extent money pledged herein is sufficient therefor.
<br /> SECTION 4.2. Performance of Covenants; Issuer. The Issuer covenants that it will
<br /> faithfully perform or cause to be performed at all times any and all covenants, undertakings,
<br /> stipulations, and provisions contained in this Indenture and in the Loan Agreement, in any and
<br /> every Bond executed, authenticated, and delivered hereunder and in all of its proceedings
<br /> pertaining hereto. The Issuer covenants that it is duly authorized under the Constitution and laws
<br /> of the State to execute this Indenture, to assign the Loan Agreement and to pledge the amounts to
<br /> be paid under the Loan Agreement and other amounts hereby pledged in the manner and to the
<br /> extent herein set forth and that all action on its part for the issuance of the Bonds and the execution
<br /> and delivery of this Indenture has been duly and effectively taken.
<br /> SECTION 4.3. Instruments of Further Assurance. The Issuer will do, execute,
<br /> acknowledge, and deliver or cause to be done, executed, acknowledged, and delivered, such
<br /> indentures supplemental hereto and such further acts, instruments, and transfers required for the
<br /> better assuring, transferring, conveying, pledging, assigning, and confirming unto the Trustee all
<br /> and singular the amounts pledged hereby to the payment of the principal of, premium, if any, and
<br /> interest on the Bonds. The Issuer, except as herein and in the Loan Agreement and the Mortgage
<br /> provided,will not sell, convey,mortgage, encumber or otherwise dispose of any part of the School
<br /> Facilities,the amounts,revenues and receipts payable under the Loan Agreement or its rights under
<br /> the Loan Agreement.
<br /> SECTION 4.4. Recording and Filing.
<br /> (a) The Company has covenanted in the Loan Agreement to cause all financing
<br /> statements (but excluding the initial financing statements dated as of the date of issue which will
<br /> be filed by the Title Insurer) related to this Indenture and all supplements thereto and the Loan
<br /> 36
<br /> 735810810
<br />
|