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from such registration requirements and with full and accurate disclosure of all material facts to <br /> the prospective purchaser(s) or transferee(s). <br /> 2.10 Issuance of a New Note. Subject to the provisions of Section 2.9, the City shall, at <br /> the request and expense of the Lender,issue a new note,in aggregate outstanding principal amount <br /> equal to that of the Note surrendered, and of like tenor except as to number,principal amount, and <br /> the amount of the periodic installments payable thereunder, and registered in the name of the <br /> Lender or such transferee as may be designated by the Lender. <br /> SECTION 3. GENERAL COVENANTS. <br /> 3.1 Payment of Principal and Interest. The City covenants that it will promptly pay or <br /> cause to be paid the principal of and interest on the Note at the place, on the dates, solely from the <br /> source and in the manner provided herein and in the Note. The principal and interest are payable <br /> solely from and secured by revenues and proceeds derived from the Loan Agreement, the Pledge <br /> Agreement and the Mortgage, which revenues and proceeds are hereby specifically pledged to the <br /> payment thereof in the manner and to the extent specified in the Note, the Loan Agreement, the <br /> Pledge Agreement and the Mortgage; and nothing in the Note or in this Resolution shall be <br /> considered as assigning, pledging or otherwise encumbering any other funds or assets of the City. <br /> 3.2 Performance of and Authority for Covenants. The City covenants that it will <br /> faithfully perform at all times any and all covenants, undertakings, stipulations and provisions <br /> contained in this Resolution, in the Note executed, authenticated and delivered hereunder and in <br /> all proceedings of the City Council pertaining thereto; that it is duly authorized under the <br /> Constitution and laws of the State of Minnesota including particularly and without limitation the <br /> Acts, to issue the Note authorized hereby, pledge the revenues and assign the Loan Agreement in <br /> the manner and to the extent set forth in this Resolution,the Note,the Loan Agreement,the Pledge <br /> Agreement, and the Mortgage; that all action on its part for the issuance of the Note and for the <br /> execution and delivery thereof has been duly and effectively taken; and that the Note in the hands <br /> of the Lender is and will be a valid and enforceable special limited obligation of the City according <br /> to the terms thereof. <br /> 3.3 Enforcement and Performance of Covenants. The City agrees to enforce all <br /> covenants and obligations of the Borrower under the Loan Agreement upon request of the Lender <br /> and being indemnified to the satisfaction of the City for all expenses and claims arising therefrom, <br /> and to perform all covenants and other provisions pertaining to the City contained in the Note and <br /> the Loan Agreement and subject to Section 3.4. <br /> 3.4 Nature of Security. Notwithstanding anything contained in the Note, the Loan <br /> Agreement,the Pledge Agreement or any other document referred to in Section 2.4 to the contrary, <br /> under the provisions of the Act the Note may not be payable from or be a charge upon any funds <br /> of the City other than the revenues and proceeds pledged to the payment thereof,nor shall the City <br /> be subject to any liability thereon, nor shall the Note otherwise contribute or give rise to a <br /> pecuniary liability of the City or, to the extent permitted by law, any of the City's officers, <br /> employees and agents. No holder of the Note shall ever have the right to compel any exercise of <br /> the taxing power of the City to pay the Note or the interest thereon, or to enforce payment thereof <br /> against any property of the City other than the revenues pledged under the Pledge Agreement; and <br /> 6 <br />