Resolution - #80-51 - 06/01/1980

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(d) The issuance and sale of the Bond, the execu- tion and delivery of the Loan Agreement and the Pledge Agreement and the performance of all covenants and agreements of the City contained in the Bond, the Loan Agreement and the Pledge Agreement and of all other acts and things required to make the Bond, the Loan Agreement and the Pledge Agreement valid and binding obligations of the City in accordance with their terms, are permitted by the Act. (e) There is no litigation pending or, to the best of its knowledge threatened, against the City relating to the Project or to the Bond, the Loan Agree- ment or the Pledge Agreement or questioning, the organ- ization of the City or its power or authority to issue the Bond or execute and deliver the Loan Agreement and the Pledge Agreement. (f) The execution, delivery and performance of the City's obligations under the Bond, the Loan Agree- ment and the Pledge Agreement have been fully author- ized by all requisite action, including the adoption of this resoiution~ and do not and will not violate any order or judgment of any court or other agency of gover~nent in any litigation to which the City is a party or by which it is bound, or any indenture, agreement or other instrument to which the City is a party or by which it or any of its property is bound, or be in conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under any such indenture, agreement or other instrument° (g) The Loan Agreement provides for payments by the Borrower to the Lender for the account of the City of such amounts as will be sufficient to pay the prin- cipal of, premium, if any, and interest on the Bond when due. No reserve funds are deemed necessary for this purpose. The Loan Agreement obligates the Bor- rower to provide for the operation and maintenance of the Project Facilities, including provision for adequate insurance, taxes and special assessments. (h) Under the provisions of Section 474.10 of the Act, the Bond shall recite that the Bond is not to be payable from nor charged upon any funds other than amounts payable by the Borrower pursuant to the Loan Agreement, which amounts are pledged to the payment thereof, or moneys derived from foreclosure or other enforcement of the Mortgage; the City is not subject to any liability thereon; no Holder of the Bond shall ever have the right to compel the exercise of the taxing power of the City to pay the Bond or the interest thereon, nor to enforce payment thereof against the -3-