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<br />, . <br /> <br />the Assignment and of all other acts and things required <br />under the Constitution and laws of the State of Minnesota <br />to make the Bond, Loan Agreement and the Assignment <br />valid and binding obligations of the City in accordance <br />with their terms, are authorized by the Act. <br /> <br />(e) There is no litigation pending or, to the <br />best of its knowledge threatened, against the City <br />relating to the Project or to the Bond or Loan Agree- <br />ment, or questioning the organization of the City or <br />its power or authority to issue the Bond or execute and <br />deliver the Loan Agreement and the Assignment. <br /> <br />(f) The execution, delivery and performance of <br />the City'S obligations under the Bond, the Loan Agree- <br />ment and the Assignment have been fully authorized by <br />all requisite action and do not and will not violate <br />any law, any order of any court or other agency of <br />government, or any indenture, agreement or other instru- <br />ment to which the city is a party or by which it or any <br />of its property is bound, or be in conflict with, <br />result in a breach of, or constitute (with due notice <br />or lapse of time or both) a default under any such <br />indenture, agreement or other instrument. <br /> <br />(g) The Loan Agreement provides for payments by <br />the Company to the Holder of the Bond for the account <br />of the city of such amounts as will be sufficient to <br />pay the principal of and interest on the Bond when due. <br />No reserve funds are deemed necessary for this purpose. <br />The Loan Agreement obligates the Company to provide for <br />the operation and maintenance of the Project Facilities, <br />including adequate insurance, taxes and special assess- <br />ments. <br /> <br />(h) Under the provisions of Section 474.10 of the <br />Act, and the Bond shall recite that, the Bond is not to <br />be payable from nor charged upon any funds other than <br />amounts payable by the Company pursuant to the Loan <br />Agreement which are pledged to the payment thereof, <br />and, in event of default, moneys derived from enforce- <br />ment of the Security Agreement or under the Guaranty <br />Agreement; the City is not subject to any liability <br />thereon; no Holder of the Bond shall ever have the <br />right to compel the exercise of the taxing power of the <br />city to pay the Bond or the interest thereon, nor to <br />enforce payment thereof against any property of the <br />City; the Bond shall not constitute a charge, lien or <br />encumbrance, legal or equitable, upon any property of <br /> <br />-3- <br />