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• ARTICLE V Particular Covenants Section 5.01. Payment of Bonds. The Issuer shall pay or cause to be paid the principal or Redemption Price of and interest on, and the purchase price of, every Bond on the date, at the place and in the manner provided herein and in the Bonds; provided, however, that the Bonds are limited obligations of the Issuer, the principal or Redemption Price of and interest on which, and the purchase price of which, are payable solely from the Revenues. The Bonds shall be secured by a lien on and pledge of the Revenues. The Bonds shall not be deemed to constitute a debt, liability or obligation of the Issuer or of the State or of any political subdivision thereof, or a pledge of the faith and credit of the Issuer or of the State or of any such political subdivision but shall be payable solely from the Revenues. The Issuer shall not be obligated to pay the Bonds or the interest thereon except from the Revenues and neither the faith and credit nor the taxing power of the Issuer or of the State or of any political subdivision thereof is pledged to the payment of the principal of or the interest on the Bonds. Section 5.02. Performance of Covenants. Undertakings and Agreements: Representations as to Authorization and Validity of Bonds. The Issuer shall faithfully perform at all times all of its covenants, undertakings and agreements contained in the Loan Agreement or in each Bond executed, authenticated and delivered under this Indenture and in any proceedings of the Issuer pertaining thereto. The Issuer represents and covenants that: (i) it is duly authorized under the Constitution and laws of the State, particularly the Act, to issue the Bonds, to enter into the Loan Agreement, to accept the Mortgage and to pledge the Revenues in the manner and to the extent set forth in this Indenture; (ii) all action on its part for the issuance of the Bonds has been duly and effectively taken; and (iii) the Bonds in the hands of the holders thereof are and will he valid and binding limited obligations of the Issuer according to their terms. Section 5.03. Liens. Encumbrances and Charges. The Issuer shall not create and, to the extent Revenues are received for the discharge thereof, shall not suffer to remain, any lien, encumbrance or charge upon the Revenues. To the extent Revenues or other moneys are received by the Issuer therefor, the Issuer will cause to be discharged, or will make adequate provisions to satisfy and discharge, within sixty (60) days after the same shall accrue, all lawful claims and demands that, if unpaid, might by law become a lien upon any Revenues; provided, however, that nothing contained in this Section shall require the Issuer to pay or cause to be discharged, or make provision for, any such lien, encumbrance or charge so long as the validity thereof shall be contested in good faith and by appropriate legal proceedings. - 38 -