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required by the population, to help prevent the movement of talented and educated persons out of
<br /> the state and to areas within the state where their services may be as effectively used, to promote
<br /> more intensive development and use of land within the City, and, eventually, to increase the tax
<br /> base of the community.
<br /> (c) There is no litigation pending or, to the best of its knowledge, threatened
<br /> against the City relating to the Bonds, the Loan Agreement, the Bond Purchase Agreement, or the
<br /> Indenture or questioning the due organization of the City, or the powers or authority of the City to
<br /> issue the Bonds and undertake the transactions contemplated hereby.
<br /> (d) The execution, delivery and performance of the City's obligations under the
<br /> Bonds, the Indenture,the Bond Purchase Agreement, and the Loan Agreement do not and will not
<br /> violate any order of any court or other agency of government of which the City is aware or in
<br /> which the City is a party, or any indenture, agreement or other instrument to which the City is a
<br /> party or by which it or any of its property is bound, or be in conflict with, result in a breach of, or
<br /> constitute (with due notice or lapse of time or both) a default under any such indenture, agreement
<br /> or other instrument.
<br /> (e) It is desirable that the Bonds be issued by the City upon the terms set forth
<br /> in the Indenture, under the provisions of which the City's interest in the Loan Agreement will be
<br /> pledged to the Trustee as security for the payment of principal of,premium, if any, and interest on
<br /> the Bonds.
<br /> (f) The Loan Agreement provides for payments by the Company to the Trustee
<br /> for the account of the City of such amounts as will be sufficient to pay the principal of, premium,
<br /> if any, and interest on the Bonds when due. The Loan Agreement obligates the Company to pay
<br /> for all costs of operation and maintenance of the Facility, including adequate insurance, taxes and
<br /> special assessments. A reserve fund has been established under the provisions of the Indenture in
<br /> connection with the issuance of the Bonds.
<br /> (g) Under the provisions of the Act, and as provided in the Loan Agreement
<br /> and Indenture, the Bonds are not to be payable from nor charged upon any funds other than
<br /> amounts payable pursuant to the Loan Agreement and moneys in the funds and accounts held by
<br /> the Trustee which are pledged to the payment thereof, the City is not subject to any liability
<br /> thereon; no owners of the Bonds shall ever have the right to compel the exercise of the taxing
<br /> power of the City to pay any of the Bonds or the interest thereon, nor to enforce payment thereof
<br /> against any property of the City; the Bonds shall not constitute a charge, lien or encumbrance,
<br /> legal or equitable, upon any property of the City (other than the interest of the City in the Loan
<br /> Repayments to be made by the Company under the Loan Agreement); and each Bond issued under
<br /> the Indenture shall recite that such Bond, including interest thereon, shall not constitute or give
<br /> rise to a charge against the general credit or taxing powers of the City.
<br /> 4. Approval and Execution of Documents. The forms of the documents referred to in
<br /> paragraph 2, are approved. The Loan Agreement, Indenture, and Bond Purchase Agreement shall
<br /> be executed in the name and on behalf of the City by the Mayor and the Administrator,or executed
<br /> or attested by other officers of the City, in substantially the form on file, but with all such changes
<br /> therein, not inconsistent with the Act or other law, as may be approved by the officers executing
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