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Borrower and the Lender, the Borrower has secured payment of amounts due under the <br /> Loan Agreement and Note by granting to the Lender a mortgage and security interest in <br /> the property described therein. A draft of the Mortgage has been submitted to the City <br /> Council. The City is not a party to the Mortgage. <br /> (f) The Note will be a special, limited obligation of the City. The Note shall <br /> not be payable from or charged upon any funds other than the revenues pledged to the <br /> payment thereof, nor shall the City be subject to any liability thereon. No holder of the <br /> Note shall ever have the right to compel any exercise of the taxing power of the City to pay <br /> the Note or the interest thereon,nor to enforce payment thereof against any property of the <br /> City. The Note shall not constitute a debt of the City within the meaning of any <br /> constitutional or statutory limitation. <br /> (g) Nothing in this resolution or the documents prepared pursuant hereto shall <br /> authorize the expenditure of any municipal funds on the Project other than the revenues <br /> derived from the Project or otherwise granted to the City for this purpose. The Note shall <br /> not constitute a charge, lien or encumbrance,legal or equitable,upon any property or funds <br /> of the City except the revenue and proceeds pledged to the payment thereof, nor shall the <br /> City be subject to any liability thereon. The holder of the Note shall never have the right <br /> to compel any exercise of the taxing power of the City to pay the outstanding principal on <br /> the Note or the interest thereon, or to enforce payment thereon against any property of the <br /> City, except such property as may be expressly pledged for the security of the Note. The <br /> Note shall recite in substance that the Note,including the interest thereon,is payable solely <br /> from the revenue derived from the Project and pledged to the payment thereof. <br /> (h) On the basis of information available to the City it appears, and the City <br /> hereby finds, that the Project constitutes properties, real and personal, used or useful in <br /> connection with educational facilities within the meaning of the- Act; that the Project <br /> furthers the purposes stated in the Act; that the availability of the financing under the Act <br /> and the willingness of the City to furnish such financing will be a substantial inducement <br /> to the Borrower to undertake the Project, and that the effect of the Project, if undertaken, <br /> will be to assist in the prevention of the emergence of blighted and marginal land, to help <br /> prevent chronic unemployment,to help the surrounding area retain and eventually improve <br /> the tax base, to provide the range of service and employment opportunities required by the <br /> population, to help prevent the movement of talented and educated persons out of the state <br /> and to areas within the State where their services may not be as effectively used, and to <br /> promote more intensive development and use of land within the City and surrounding <br /> communities, and to provide available adequate educational facilities to residents of the <br /> State at a reasonable cost. <br /> (i) It is desirable, feasible, and consistent with the objects and purposes of the <br /> Act to issue the Note for the purpose of financing a portion of the costs of the Project. <br /> SECTION 2. THE NOTE. <br /> 2.1 Authorized Amount and Form of Note. The Note is hereby approved and shall be <br /> issued pursuant to this Resolution in substantially the form submitted to the City Council with such <br /> 3 <br />