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<br />ARTICLE IV
<br />GENERAL COVENANTS
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<br />Section 4.01. Payment of Principal, Premium, li Any, and Interest; Special
<br />Obligations. The Authority covenants that it will promptly pay the principal of,
<br />premium, if any, and interest on every Bond issued under this Resolution at the
<br />place, on the dates and in the manner provided herein and in the Bonds according to
<br />the true intent and meaning thereof, but solely from the amounts pledged therefor
<br />which are from time to time held by the Servicing Agent in the Bond Fund and the
<br />Reserve Fund. The principal of, premium, if any, and interest on the Bonds are
<br />payable solely from the amounts to be paid under the Agreement and the Deed of Trust
<br />and otherwise as provided herein and in the Agreement and the Deed of Trust, which
<br />amounts are hereby specifically pledged to the payment thereof in the manner and to
<br />the extent herein specified, and nothing in the Bonds or in this Resolution shall
<br />be construed as pledging any other funds or assets of the Authority. Neither the
<br />State of California, the City, nor any other political subdivision of the State
<br />shall in any event be liable for the payment of the principal of, premium, if any,
<br />or interest on any of the Bonds or for the performance of any pledge, obligation.or
<br />agreement undertaken by the Authority.
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<br />The Bonds constitute special obligations of the Authority payable solely as
<br />hereinabove provided, and neither the Bonds nor the redemption premium, if any, nor
<br />the interest thereon shall constitute an indebtedness of the City, the State of
<br />California or any other political subdivision thereof. The Bonds shall not
<br />constitute a charge against the general credit or taxing powers, if any, of the
<br />Authority, the City, the State of California or any political subdivision thereof.
<br />No Owner of any of the Bonds shall ever have the right to compel any exercise of the
<br />taxing power, if any, of the Authority, the City, the State of California or any
<br />political subdivision thereof to pay the Bonds or the interest thereon, nor to
<br />enforce payment thereof against any property of the Authori ty or the City; nor
<br />shall the Bonds constitute a charge, lien or encumbrance, legal or equitable, upon
<br />any property of the Authority or the City.
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<br />Section 4.02. Performance of Covenants; Authority. The Authority
<br />covenants that it will faithfully perform at all times any and all covenants,
<br />undertakings, stipulations and provisions contained in this Resolution, in the
<br />Agreement, in any and every Bond executed, authenticated and delivered hereunder
<br />and in all of its proceedings pertaining hereto. The Authority covenants that it
<br />is duly authorized under the laws of the State, including particularly and without
<br />limitation the Law, to issue the Bonds authorized hereby and to execute this
<br />Resol ution and the Agreement and to pledge the amounts to be paid under the
<br />Agreement and other amounts hereby pledged in the manner and to the extent herein
<br />set forth, that all action on its part for the issuance of the Bonds, the adoption
<br />of this Resolution and the execution and delivery of the Agreement has been duly
<br />and effectively taken, and that the Bonds in the hands of the Owners thereof are and
<br />will be valid and enforceable special obligations of the Authority according to the
<br />terms thereof and hereof.
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<br />Section 4.03. Instruments of Further Assurance. The Authority will do,
<br />execute, acknowledge and deliver or cause to be done, executed, acknowledged and
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