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ARTICLE THREE <br /> <br />REDEMPTION OF NOTE BEFORE MATURITY <br /> <br />Section 301. Redemption <br /> <br /> (a) In the event of: (i) damage to or destruction of the <br />Project or Condemnation of the Project or any part thereof and <br />(ii) if the Borrower does not elect to restore the Project <br />pursuant to Section 2.04 of the Mortgage, the Note shall be <br />subject to prepa~nent by the City from funds furnished by the <br />Borrower at the time, to the extent and in the manner set forth in <br />Section 5.02 of the Loan Agreement. <br /> <br /> (b) The Note may be othe~vise prepaid in accordance with <br />the provisions of the Note. <br /> <br />Section 302. Termination of Interest <br /> <br /> Upon deposit of the redemption price with the Lender and <br />the giving of any notice required by law, the principal amounts <br />prepaid shall, after such date, cease to bear interest. <br /> <br />ARTICLE FOUR <br /> <br />GENERAL COVENANTS <br /> <br />Section 401. Payment of Principal and Interest <br /> <br /> The City covenants that it will promptly pay or cause to <br />be paid the principal of and interest on the Note at the place, on <br />the dates and in the manner provided herein and in said Note. The <br />principal and interest are payable solely from revenues and <br />proceeds derived from the Loan Agreement, the Mortgage, the <br />Guaranty, and the Assignment of Leases and Rents, which revenues <br />and proceeds are hereby specifically pledged to the payment <br />thereof in the manner and to the extent specified in the Note, <br />Loan Agreement, the Mortgage and the Assignment of Leases and <br />Rents; and nothing in the Note or in this Resolution shall be <br />considered as assigning, pledging or otherwise encumbering any <br />other funds or assets of the City. <br /> <br />Section 402. Performance of and Authority for Covenants <br /> <br /> The City covenants that it will faithfully perform at all <br />times any and all covenants, undertakings, stipulations and <br />provisions contained in this Resolution, in the Note, and in all <br />proceedings of the City Council pertaining thereto; that it is <br />duly authorized under the Constitution and laws of the State of <br />Minnesota including particularly and without limitation the Act, <br />to issue the Note, pledge the revenues and assign the Loan Agree- <br />ment in the manner and to the extent set forth in this Resolution, <br /> <br />13 <br /> <br /> <br />