1. MIDA Bond-Oak Grove School - Laserfiche WebLink

ARTICLE THREE GENERAL COVENANTS 3.1. PAYMENT OF PRINCIPAL AND INTEREST. The Issuer covenants that it will promptly payor cause to be paid the principal of and interest on the Bonds at the place and on the dates required, but solely from the source and in the manner provided herein and in the Bonds. The principal and interest are payable solely from and secured by revenues and proceeds derived from the Loan Agreement, or credited to the Bond Account or the Proceeds Account, which revenues and proceeds are hereby specifically pledged to the payment thereof in the manner and to the extent specified herein and in the Bonds, the Loan Agreement and the Pledge Agreement, and nothing in the Bonds or in this Bond Resolution shall be considered as assigning, pledging or otherwise encumbering any other funds or assets of the Issuer. 3.2. PERFORMANCE OF ISSUER COVENANTS. The Issuer covenants that it will faithfully perform at all times any and all covenants, undertakings, stipulations and provisions contained in this Bond Resolution, in the Bonds executed, authenticated and delivered hereunder and in all proceedings of the County Commission pertaining thereto; that it is duly authorized under the constitution and laws ofthe State of North Dakota including particularly and without limitation the Act, to issue the Bonds authorized hereby, pledge the revenues and assign the Loan Agreement in the manner and to the extent set forth in this Bond Resolution, the Bonds, the Loan Agreement and the Pledge Agreement; that all action on its part for the issuance ofthe Bonds and for the execution and delivery thereof has been duly and effectively taken; and that the Bonds in the hands of the Lender are and will be a valid and enforceable special limited obligation ofthe Issuer according to the terms thereof. 3.3. ENFORCEMENT AND PERFORMANCE OF COVENANTS. The Issuer agrees to enforce all covenants and obligations of the Corporation under the Loan Agreement upon request of the Lender and being indemnified to the satisfaction of the Issuer for all expenses and claims arising therefrom, and to perform all covenants and other provisions pertaining to the Issuer contained herein and in the Bonds, the Loan Agreement and the Pledge Agreement, subject to Section 3.4. 3.4. NA TURE OF SECURITY. Notwithstanding anything contained in the Bonds, the Loan Agreement or the Pledge Agreement to the contrary, under the provisions of the Act the Bonds may not be payable from or be a charge upon any funds of the Issuer other than the Bond Account or the Proceeds Account and the revenues and proceeds pledged to the payment thereof, nor shall the Issuer be subject to any liability thereon, nor shall the Bonds otherwise constitute or give rise to a pecuniary liability ofthe Issuer or, to the extent permitted by law, any of the Issuer's officers, employees and agents. No holder ofthe Bonds shall ever have the right to compel any exercise of the taxing power of the Issuer to pay the Bonds or the interest thereon, or to enforce payment thereof against any property of the Issuer other than the revenues pledged under the Pledge Agreement; and the Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property ofthe Issuer, other than sums held in the Bond Account and the Proceeds Account; and the Bonds shall not constitute a debt of the Issuer within the meaning of any constitutional or statutory limitation of -5-