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<br />ARTICLE FOUR <br /> <br />GENERAL COVENANTS <br /> <br />4-1. 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 Notes at the <br />place, on the dates, from the source and in the manner provided <br />herein and in the Notes. The principal and interest are <br />payable solely from and secured by revenues and proceeds <br />derived from the Loan Agreement, the Pledge Agreement, the <br />Mortgage, the Construction Loan Agreement, the Guaranty and the <br />Assignment of Rents and Leases, which revenues and proceeds are <br />hereby specifically pledged to the payment thereof in the <br />manner and to the extent specified in the Notes, the Loan <br />Agreement, the Pledge Agreement, the Construction Loan <br />Agreement, the Guaranty, the Mortgage and the Assignment of <br />Rents and Leases 7 and nothing in the Notes or in this <br />Resolution shall be considered as assigning, pledging or <br />otherwise encumbering any other funds or assets of the City. <br /> <br />4-2. Performance of and Authority for Covenants. <br /> <br />The City covenants that it will faithfully perform at <br />all times any and all of its covenants, undertakings, stipula- <br />tions and provisions contained in this Resolution, in the Notes <br />executed, authenticated and delivered hereunder and in all <br />proceedings of the City Council pertaining thereto; that it is <br />duly authorized under the Constitution and laws of the State of <br />Minnesota including particularly and without limitation the <br />Act, to issue the Notes authorized hereby, pledge the revenues <br />and assign the Loan Agreement in the manner and to the extent <br />set forth in this Resolution, the Notes and the Loan Agreement <br />and Pledge Agreement; that all action on its part for the <br />issuance of the Note and for the execution and delivery thereof <br />has been duly and effectively taken~ and that the Note in the <br />hands of the Lender is and will be a valid and enforceable <br />obligation of the City according to the terms thereof. <br /> <br />4-3. Performance of Covenants. <br /> <br />The City agrees to enforce all covenants and <br />obligations of the Borrower under the Loan Agreement and <br />Construction Loan Agreement, and to perform all covenants and <br />other provisions pertaining to the City contained in the Note, <br />the Loan Agreement and the Construction Loan Agreement and <br />subject to Section 4-4. <br /> <br />32 <br />