1979 Resolutions - Laserfiche WebLink

Home Browse Search

4-4. Nature of Security. Notwithstanding anything contained in the Tax Exempt Note, Mortgage, Loan Agreement or any other document referred to in Section 2-4 to the contrary, under the provisions of the Act the Tax Exempt Note may not be payable from or be a charge upon any funds of the City other than the revenues pledged to the payment thereof, nor shall the City be subject to any liability thereon, nor shall the Tax Exempt Note otherwise contribute or give rise to a pecuniary liability of the City or, to the extent permitted by law, any of the City's offi- cers, employees and agents. No holder of the Tax Exempt Note shall ever have the right to compel any exercise of taxing power of the City to pay the Tax Exempt Note or the interest thereon, or to enforce payment thereof against any property of the City; and the Tax Exempt Note shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City; and the Tax Exempt Note shall not consti- tute a debt of the City within the meaning of any constitution- al or statutory limitation; but nothing in the Act impairs the rights of the holder of. the Tax Exempt Note to enforce the covenants made for the security thereof as provided in this. Resolution, the Mortgage and in the Act, and by authority of the Act the City has made the covenants and agreements herein for the benefit of the holder of the Tax Exempt Note; provided that in any event, the agreement of the City to perform the covenants and other provisions contained in the Tax Exempt Note, the Loan Agreement and the Disbursing Agreement shall be subject at all times to the availability of revenues under the Loan Agreement sufficient to pay all costs of such performance or the enforcement thereof, and the City shall not be subject to any personal or pecuniary liability thereon. 19