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(q) "Authorized investments" means any negotiable direct obligations of the United <br />States, or any negotiable obligations for which the full faith and credit of the United States <br />are pledged for the payment of principal and interest, or any obligations issued by federal <br />land banks or federal intermediate credit banks established under the Federal Farm Loan Act, <br />as amended, bonds or debentures of the Federal Home Loan Bank Board or of any federal <br />home loan bank established under the Federal Home Loan Bank Act, obligations of the <br />Federal National Mortgage Association established under the National Housing Act, as <br />amended, and debentures and consolidated debentures issued by the Central Bank for Coopera- <br />tives and banks for cooperatives established under the Farm Credit Act of 1933, as amended. <br /> <br /> Section 2. Equality of Bonds, Pledge o[ Revenues. Pursuant to the Revenue Bond Law of <br />1941 and this resolution, outstanding bonds shall rank on a parity and shall be equally secured <br />by a pledge, charge and lien upon the gross revenues of the enterprise without priority for number, <br />date of bonds, date of sale, date of execution, or date of delivery, and the payment of the interest <br />on and principal of outstanding bonds and any premiums upon the redemption of any thereof shall <br />be and are secured by an exclusive pledge, charge and lien upon the gross revenues of the <br />enterprise, and all of the gross revenues of the enterprise (including revenues of improvements <br />and extensions later constructed or acquired and revenues of existing systems, plants, works or <br />undertakings to be acquired, improved or extended or for the acquisition, improvement or <br />extension of which said bonds are to be issued) are hereby pledged, charged and assigned for the <br />security of outstanding bonds, and such gross revenues shall constitute a trust fund for the <br />security and payment of the interest on and principal of outstanding bonds and so long as <br />any of outstanding bonds or interest thereon are unpaid said gross revenues and interest thereon <br />shall not be used for any other purpose, except as permitted by this resolution and any subse- <br />quent resolution, and shall be held in trust for the benefit of the bondholders and shall be applied <br />pursuant to this resolution, or to this resolution as modified pursuant to provisions herein, and <br />any subsequent resolution. <br /> <br /> Nothing in this resolution or in any subsequent resolution shall preclude: (a) the redemption <br />prior to maturity of any bonds subject to call and redemption and payment of said bonds from <br />proceeds of refunding bonds issued under said Revenue Bond Law of 1941 as the same now exists <br />or as hereafter amended, or under any other law of the State of California; (b) the issuance, <br />subject to the limitations in Covenant 11 in Section 12 hereof, of additional indebtedness evidenced <br />by revenue bonds, revenue notes or any other evidences of indebtedness payable out of the <br />revenues of the enterprise and ranking on a parity with said bonds. <br /> <br /> Section 3. Amount, Issuance, Purpose and Nature of Bonds. That under and pursuant to said <br />Revenue Bond Law revenue bonds of the city in the amount of $2,000,000 shall be issued for the <br />purpose stated in the recitals hereof. Said revenue bonds shall be and are special obligations of the <br />city and shall be and are secured by a pledge of and lien upon, and shall be and are a charge upon, <br />and shall be and are payable as to the principal thereof and interest thereon and any premiums upon <br />the redemption of any thereof, solely from the gross revenues of the enterprise, such gross <br />revenues being hereby pledged, charged and assigned for the security of the bonds. <br /> <br /> Section 4. No General City Liability. The general fund of the city is not liable for the <br />payment of the bonds or their interest, nor is the credit or taxing power of the city pledged for the <br />payment of the bonds or their interest. The holder of the bonds or coupons shall not compel the <br />exercise of the taxing power by the city or the forfeiture of any of its property. The principal of <br />and interest on the bonds and any premiums upon the redemption of any thereof are not a debt of <br />the city nor a legal or equitable pledge, charge, lien, or encumbrance, upon any of its property, or <br />upon any of its income, receipts, or revenues, except the gross revenues of the enterprise which <br />are, under the terms of this resolution and said Revenue Bond Law, pledged to the payment of <br />said bonds and interest. <br /> <br /> <br />