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<br />ARTICLE THREE <br /> <br />GENERAL COVENANTS <br /> <br />3-1. Payment of Principal and Interest. <br /> <br />The City covenants that it will promptly payor cause <br />to be paid the principal of and interest on the Note at the <br />place, on the dates, solely from the source and in the manner <br />provided herein and in the Note. The principal and interest <br />are payable solely from and secured by revenues and proceeds <br />derived from the Loan Agreement, the Pledge Agreement, the <br />Security Agreement, the Disbursing Agreement, 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 />the Loan Agreement, the Pledge Agreement, the Security <br />Agreement and the Disbursing Agreement; and nothing in the Note <br />or in this Resolution shall be considered as assigning, <br />pledging or otherwise encumbering any other funds or assets of <br />the City. <br /> <br />3-2. Performance of and Authority for Covenants. <br /> <br />The City covenants that it will faithfully perform at <br />all times any and all covenants, undertakings, stipulations and <br />provisions contained in this Resolution, in the Note executed, <br />authenticated and delivered hereunder and in all proceedings of <br />the City Council pertaining thereto; that it is duly authorized <br />under the Constitution and laws of the State of Minnesota <br />including particularly and without limitation the Act, to issue <br />the Note authorized hereby, pledge the revenues and assign the <br />Loan Agreement in the manner and to the extent set forth in <br />this Resolution, the Note, the Loan Agreement and the Pledge <br />Agreement; that all action on its part for the issuance of the <br />Note and for the execution and delivery thereof has been duly <br />and effectively taken; and that the Note in the hands of the <br />Lender is and will be a valid and enforceable special limited <br />obligation of the City according to the terms thereof. <br /> <br />3-3. Enforcement and Performance of Covenants. <br /> <br />The City agrees to enforce all covenants and <br />obligations of the Borrower under the Loan Agreement, upon <br />request of the Lender and being indemnified to the satisfaction <br />of the City for all expenses and claims arising therefr~n, and <br />to perform all covenants and other provisions pertaining to the <br />City contained in the Note, the Loan Agreement and the <br />Disbursing Agreement and subject to Section 3-4. <br /> <br />18 <br />