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the Pledge Agreement, the Mortgage and the Disbursement Agreement valid and binding obligations of the Issuer in accordance with their terms are authorized by the Act; (e) it is desirable that the Note in the principal amount of $1,500,000 be issued by the Issuer upon the terms set forth herein and that the Issuer pledge its interest in the Agreement and grant a security interest therein to the Lender as security for the payment of the principal of, premium, if any, and interest on the Note; (f) the Loan Repayments (as defined in the Agree- ment) contained in the Agreement ar. fixed and are required to be revised from time to time as necessary, so as to produce income and revenues sufficient to pro- vide for prompt payment of the principal of, premium, if any, and interest on the Note when due, and the Agree- ment also provides that the Borrower is required to pay all expenses of the operation and maintenance of the Land and the Project, including, but not limi ted to, adequate insurance thereon and all taxes and special assessments levied upon or with respect to the Land and payable during the term of the Agreement; (g) under the provisions of Minnesota Statutes, Section 474.10, the Note is not to be payable from nor charged upon any funds of the Issuer other than the revenues pledged to the payment thereof pursuant to the Agreement; the Issuer is not subject to any liabili ty thereon; no Holder of the Note shall ever have the right to compel any exercise of the taxing power of the Issuer to pay the Note or the interest thereon nor to enforce payment thereof against any property of the Issuer; the Note, premium, if any, and interest thereon shall not constitute an indebtedness of the Issuer within the meaning of any consti tutional or statutory limi tation and shall not consti tute or give rise to a pecuniary liabili ty of the Issuer or charge against its general credit or taxing powers and shall not constitute a charge, lien or encumbrance, legal or equi table, upon any property of the Issuer other than its interest in the Mortgaged Property (as defined in the Mortgage); (h) the execution and deli v~ry of the Note, the Agreement, the Pledge Agreemen!.L,. the Disbursement Agree- ment and the Mortgage shall not conflict with or consti- tute, on the part of the Issuer, a breach of or a de- fault under any existing agreement, indenture, mortgage, lease or other instrument to which the Issuer is subject or is a party or by which it is bound; provided that this finding is made solely for the purpose of estopping the Issuer from denying the validity of the Note, the -6 -