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ARTICLE FOUR GENERAL COVENANTS 4-1. Payment of Principal and Interest. The City covenants that it will promptly pay or cause to be paid the principal of and interest on the Tax Exempt Note at the place, on the dates and in the manner provided herein and in said Tax Exempt Note. The principal and interest are payable solely from revenues and proceeds derived from the Loan Agreement, including revenues and proceeds derived from the Mortgage, the Company Security Agreement, the Sylvan Security, the Assignment of Leases and Rents, the Assignment of Life Insurance and the Guaranty Agreement, which revenues and proceeds are hereby specifically pledged to the payment thereof in the manner and to the extent specified in the Tax Exempt Note and Mortgage, and nothing in the Tax Exempt Note or in this Resolution shall be considered as assigning, pledging or otherwise encumbering any other funds or assets of the City. 4-2. Performance of and Authority for Covenants. The City covenants that it will faithfully perform ( at all times any and all covenants, undertakings, stipulations and provisions contained in this Resolution, in the Tax Exempt Note executed, authenticated and delivered hereunder and in all proceedings of the City Council pertaining thereto; that it is duly authorized under the Constitution and laws of the State of Minnesota including particularly and without limitation the Act, to issue the Tax Exempt Note authorized hereby, pledge the revenues and assign the Loan Agreement in the manner and to the extent set forth in this Resolution, the Tax Exempt Note, the Mortgage and the Assignment of Loan Agreement; that all action on its part for the issuance of the Tax Exempt Note and for the execution and delivery thereof has been duly and effectively taken; and that the Tax Exempt Note in the hands of the holder thereof is and will be a valid and enforceable obligation of the City according to the terms thereof. 4-3. Enforcement and Performance of Covenants. The City agrees to enforce all covenants and obli- gations of the Company under the Loan Agreement and Disbursing Agreement, and to perform all covenants and other provisions contained in the Tax Exempt Note, the Loan Agreement and the Disbursing Agreement.