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~~ (d) The issuance and sale of the Note, the execu- tion and delivery of the Loan Agreement and the Loan Agreement Assignment and the performance of all covenants and agreements of the City contained in the Note, the Loan Agreement and the Loan Agreement Assignment and of all other acts and things required under the Constitution and laws of the state of Minnesota to make the Note, the Loan Agreement and the Loan Agreement 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 Note, the Loan Agree- ment or the Loan Agreement Assignment or questioning the organization of the City or its power or authority to issue the Note or execute and deliver the Loan Agreement and the Loan Agreement Assignment, (f) The execution, delivery and performance of the City's obligations under the Note, the Loan Agreement and the Loan Agreement 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 instrument 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 Company to the Lender for the account of the City of such amounts as will be sufficient to pay the prin- cipal of, premium, if any, and interest on the Note when due, No reserve funds are deemed necessary for this purpose. The Loan Agreement obligates the Company to provide for the operation and maintenance of the Project facilities, including provision for adequate insurance, taxes and special assessments, (h) Under the provisions of Section 474.10 of the Act, the Note shall recite that the Note is not to be payable from nor charged upon any funds other than amounts payable by the Company pursuant to the Loan Agreement, which amounts are pledged to the payment thereof, or amounts payable under the Guaranty, and moneys derived from foreclosure or other enforcement of the Mortgage; the City is not SUbject to any liability thereon; no Holder of the Note shall ever have the right to compel the exercise of the taxing power of the City to pay the Note or the interest thereon, nor to enforce payment thereof against the general funds or property of the City; the Note shall not constitute a -3-