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(h) Under the provisions of Minnesota Statutes, <br />Section 474.10, and as to be provided ih the Note, the <br />Note is not to be payable from nor charged upon any funds <br />of the City other than the revenue under the Loan <br />Agreement pledged to the payment thereof; the City is not <br />subject to any liability thereon; no Holder of the Note <br />shall ever have the right to compel any exercise of the <br />taxing power of the City to pay the Note or the .interest· <br />thereon, nor to enforce payment thereof against any <br />property of the City except the Project, or portions <br />thereof, mortgaged or otherwise encumbered by the <br />Mortgage; the Note issued hereunder shall recite that the <br />Note~ including interest thereoh, is payable solely from <br />the revenue under the Loan Agreement pledged to the <br />payment thereof; and the Note shall not constitute a debt. <br />of the City within the meaning of any constitutional, <br />statutory or charter limitation; provided, however, that <br />nothing contained in this paragraph (h) shall impair the <br />rights of the Holder or Holders of the Note to enforce <br />covenants made for the security thereof as provided in <br />Minnesota Statutes 474.11. <br /> <br />Section 3. Authorization and Sale. <br /> <br />3.1. Authorization. The City is authorized by the Act to <br />issue revenue bonds and loan the proceeds thereof to <br />business enterprises to finance the acquisition and <br />construction of "projects" as defined in the Act, and to <br />make all contracts, execute all instruments and do all <br />things necessary or convenient in the exercise of such <br />authority. <br /> <br />3.2. Preliminary City Approval. By preliminary <br />resolution duly adopted by the Council on February 12, <br />1979, this Council approved the sale of industrial <br />development revenue bonds pursuant to the Act and the loan <br />of the proceeds to the Borrower for the construction of <br />the Project and authorized the preparation of such <br />documents as may be appropriate to the Project. The Note <br />constitutes an industrial development revenue bond in <br />contemplation of the Act 'and said preliminary resolution. <br /> <br />3.3. Approval of Documents. Pursuant to the above, there <br />have been prepared and presented to this Council copies of <br />the following documents, all of which are~now, or shall <br />be, placed on file in the office of the City Clerk: <br /> <br />(a) the Loan Agreement; <br /> <br />(b) the Pledge/Disbursement Agreement; <br /> <br />-4- <br /> <br /> <br />