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July 14, 1981, and has been approved by the Commis- sioner of Securities of the State of Minnesota as tend- ing to further the purposes and policies of the Act. (d) The issuance and sale of the Bond, the execu- tion and delivery of the Loan Agreement and the Assign- ment and the performance of all covenants and agreements of the City contained in the Bond, the Loan Agreement and the Assignment and of all other acts and things required under the Constitution and laws of the State of Minnesota to make the Bond, Loan Agreement and the Assignment valid and binding obligations of the city in accordance with their terms, are authorized by the Act. (e) There is no litigation pending or, to the best of its knowledge threatened, against the City relating to the Project or to the Bond or Loan Agree- ment, or questioning the organization of the City or its power or authority to issue the Bond or execute and deliver the Loan Agreement and the Assignment. (f) The execution, delivery and performance of the City's obligations under the Bond, the Loan Agree- ment and the Assignment have been fully authorized by all requisite action and do not and will not violate any law, any order of any court or other agency of government, or any indenture, agreement or other instru- ment to which the City is a party or by which it or any of its property is bound, or be in conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under any such indenture, agreement or other instrument. (g) The Loan Agreement provides for payments by the Borrowers to the Holder of the Bond for the account of the city of such amounts as will be sufficient to pay the principal of and interest on the Bond when dUe. No reserve funds are deemed necessary for this purpose. The Loan Agreement obligates the Borrowers to provide for the operation and maintenance of the Project Facili- ties, including adequate insurance, taxes and special assessments. (h) Under the provisions of Section 474.10 of the Act, and as the Bond shall recite, the Bond is not to be payable from nor charged upon any funds other than amounts payable by the Borrowers pursuant to the Loan Agreement which are pledged to the payment thereof, and, in event of default, moneys derived from foreclo- sure or other enforcement of the Mortgage or the Assign- ment of Rents; the City is not subject to any liability thereon; no Holder of the Bond shall ever have the right to compel the exercise of the taxing power of the City to pay the Bond or the interest thereon, nor to -3-