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deposit in any account or fund under the Indenture may be exchanged for cash or investments <br /> of equal value credited to any other account or fund. The Trustee shall redeem or sell,at the <br /> best price obtainable, any investments so made, whenever it shall be necessary to do so in <br /> order to provide moneys to meet any payment from the respective account or fund. Neither <br /> the Trustee nor the City shall be liable for any loss resulting from any such investment, nor <br /> from failure to preserve rights against endorsers or other prior parties to instruments <br /> evidencing any such investment. Monies credited to any account or fund maintained under <br /> the Indenture which are uninvested pending disbursement or receipt of proper investment <br /> directions or as directed under the Indenture,may be deposited to and held in a non-interest <br /> bearing demand deposit account established with the Commercial Banking Department of <br /> the Trustee or with any bank affiliated with the Trustee, without the pledge of securities to <br /> or other collateralization of such deposits accounts. <br /> Covenants of the City <br /> Principal of and premium, if any, and interest on the Bonds shall be paid when due, <br /> but solely to the extent of amounts from Loan Repayments,revenues derived from the Loan <br /> Agreement or other amounts derived from the Trust Estate, including amounts received <br /> under the Mortgage,the Subordinate Mortgage,and Net Proceeds;provided that neither such <br /> payment obligations nor any of the agreements or obligations of the City relating thereto shall <br /> be construed to constitute a general or moral obligation or an indebtedness of the City or <br /> constitute or give rise to a pecuniary liability or be a charge against the general credit or <br /> taxing powers of the City. <br /> Events of Default <br /> Each of the following events is hereby defined as, and is declared to be and to <br /> constitute, an "Event of Default": <br /> (a) Any nonpayment when due of the principal of or any premium or <br /> interest on any outstanding Senior Bonds (whether due at maturity or upon <br /> redemption, declaration or otherwise); or <br /> (b) Any nonpayment when due of the principal of or any premium or <br /> interest on any Senior Indebtedness other than Senior Bonds(whether due at maturity <br /> or upon redemption, declaration or otherwise); or <br /> (c) Any failure in the due and timely performance of any of the other <br /> covenants,conditions, agreements and provisions contained in the Senior Bonds or <br /> in the Indenture, or in any indenture supplemental hereto to be performed, and such <br /> default shall have continued for a period of sixty days after written notice,specifying <br /> such default and requiring the same to be remedied, shall have been given to the <br /> Borrower by the Trustee, or if such notice is given to the Trustee and the Borrower <br /> by Holders of not less than twenty-five percent (25%) in principal amount of <br /> outstanding Senior Bonds; or <br />