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Agreement (the "Loan Repayments") and other revenues derived
<br /> by the Issuer from the Mortgaged Property and the Issuer 's
<br /> rights (except certain rights as to indemnification and
<br /> reimbursement of expenses) under the Agreement and the Mort-
<br /> gaged Property under the Mortgage (the "Mortgaged Prop-
<br /> erty") , and , pursuant to the Assignment , all rents, leases,
<br /> subleases and profits of the Mortgaged Property, and the
<br /> principal of, premium, if any, and interest on the Bonds
<br /> shall be payable solely from the revenues pledged therefor ,
<br /> and the Bonds shall not constitute a debt of the Issuer
<br /> within the meaning of any constitutional or statutory limi-
<br /> tation nor shall constitute or give rise to a pecuniary
<br /> liability of the Issuer or a charge against the Issuer 's
<br /> general credit or taxing powers and shall not constitute a
<br /> charge, lien or encumbrance, legal or equitable , upon any
<br /> property of the Issuer other than its interest in said Mort-
<br /> gaged Property; and
<br /> WHEREAS, the Issuer proposes to loan the proceeds of the
<br /> Bonds to the Borrower to acquire , construct and install the
<br /> Project, and the Borrower desires to borrow the proceeds
<br /> from the Issuer to finance the Project upon the terms and
<br /> conditions as required by the Act and as set forth in the
<br /> Agreement ; and
<br /> WHEREAS, under the Agreement, the Borrower is to pay to
<br /> the Issuer sufficient moneys each year to pay the principal
<br /> of, premium, if any, and interest on the Bonds issued to
<br /> finance the Project , and the Borrower is to provide the cost
<br /> of maintaining the Mortgaged Property in good repair , the
<br /> cost of keeping the Mortgaged Property properly insured and
<br /> any payments required for taxes ; and
<br /> WHEREAS, Eugene P. Donahue and Mary H. Donahue, individ-
<br /> uals residing in the State of Minnesota, jointly and sever-
<br /> ally, as Guarantors , their heirs , legal representatives,
<br /> successors and assigns shall , pursuant to the terms of the
<br /> Guaranty Agreement, dated as of December 1, 1982 (the "Guar-
<br /> anty") , guarantee the payment of the principal of, premium,
<br /> if any, and interest on said Bonds;
<br /> NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
<br /> THE CITY OF ELK RIVER, MINNESOTA, THAT:
<br /> Section 1. The City Council of the Issuer acknowledges,
<br /> finds , determines and declares that the welfare of the State
<br /> requires active promotion, attraction, encouragement and
<br /> development of economically sound industry and commerce
<br /> through governmental action to prevent, so far as possible,
<br /> emergence of blighted lands and areas of chronic unemploy-
<br /> ment , and it is the policy of the State to facilitate and
<br /> 411 encourage action by local government units to prevent the
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