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The Series 2001 Bonds are special,limited revenue obligations of the City and do not <br /> constitute an indebtedness, a pecuniary liability, a moral or general obligation or a loan of <br /> the credit of the City or a charge, lien or encumbrance, legal or equitable, against the City's <br /> property,general credit or taxing powers. Principal of,premium,if any, and interest on the <br /> Series 2001 Bonds are payable solely out of (i) the revenues derived from the Loan <br /> Repayments made to the City by the Borrower pursuant to the Loan Agreement,(ii)amounts <br /> available therefor in the Debt Service Reserve Fund with respect to the Senior Bonds and <br /> other funds held under the Indenture,and(iii)under certain circumstances,amounts realized <br /> upon the sale or other disposition of the Mortgaged Property under the Mortgage and the <br /> Subordinate Mortgage. The right of the City to receive Loan Repayments under the Loan <br /> Agreement will be pledged and a security interest therein granted by the City to the Trustee <br /> as security for the payment of the Series 2001 Bonds. <br /> Neither the State of Minnesota nor any political subdivision thereof shall in any <br /> event be liable for the payment of the principal of, premium,if any, or interest on the <br /> Series 2001 Bonds or the performance of any pledge,mortgage,obligation or agreement <br /> of any kind whatsoever that may be undertaken by the City. Neither the Series 2001 <br /> Bonds nor any of the agreements or obligations of the City contained in the Indenture <br /> or the Loan Agreement shall be construed to constitute(a)an indebtedness of the State <br /> of Minnesota,the City or any other political subdivision of the State within the meaning <br /> of any constitutional or statutory limitations,or(b)a general or moral obligation of the <br /> City. <br /> Loan Repayments; Assignment of Loan Agreement <br /> Under the Indenture, the City has pledged its interest in the Loan Agreement <br /> (including the amounts payable thereunder to the City by the Borrower,but excluding certain <br /> rights to payment of fees, expenses and indemnification)to the Trustee to secure the Series <br /> 2001 Bonds. The amounts payable under the Loan Agreement as Loan Repayments are <br /> payable directly to the Trustee and will be sufficient, if paid promptly and in full, to make <br /> all repayments of principal of and premium,if any,and interest on Outstanding Series 2001 <br /> Bonds as the same become due,at maturity,upon redemption and prepayment or otherwise. <br /> The Trustee will be authorized to exercise the rights of the City and to enforce the <br /> obligations of the Borrower under the Loan Agreement. The Loan Agreement is a <br /> nonrecourse obligation of the Borrower and the obligations of the Borrower to make Loan <br /> Repayments thereunder are secured solely from the Collateral. Upon any occurrence of an <br /> Event of Default, recourse will be available only against the assets of the Borrower subject <br /> to the Mortgage and the Subordinate Mortgage. (See "The Loan Agreement" in Appendix <br /> A to this Official Statement.) <br /> Rate Covenant; Retention of Management Consultant <br /> The Borrower shall operate the Project, subject to applicable requirements or <br /> restrictions imposed by law, such that Net Revenues Available for Debt Service in each <br /> calendar quarter,commencing with the calendar quarter ending September 30,2003,will be <br />