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ARTICLE III COVENANTS, SPECIAL FUNDS AND APPLICATION THERrOC 3.01 Bonds Not to Be Indebtedness of Issuer; Neither the Bonds nor the coupons attached thereto shall be or constitute general obligations or indebtedness of the Issuer as "bonds" within the meaning of Article VII, Section 12, Florida Constitution, but shall be payable solely from and secured by a prior lien upon and pledge of the gross revenues, as. herein provided. No owner or holder of any Bond or coupon issued hereunder shall ever have the right to compel the exercise of any ad valorem taxing power to pay Such Bond or coupon or the cost of operating and maintaining the System, or be entitled to payment of such Bond or coupon from any fuhds of the Issuer except from the gross revenues derived from the operation of the System in the manner provided herein. 3.'02 Security for Bonds. The payment of the debt service of all of the Bonds issued hereunder shall be secured forthwith equally and ratably by a pledge of and a prior lien Upon the gross revenues derived from the operation of the System, as now or hereafter constituted. The Issuer does hereby irrevocably pledge such funds to the payment of the principal of and interest on the Bonds and to the payment into the Sinking Fund at the times provided of the sums required to secure to the holders of the Bonds issued hereunder the payment of the principal of and interest thereon at the respective maturities of the Bonds and coupons so held by.them. 3.03 Application of Bond Proceeds. The Issuer hereby covenants that it will establish with the Florida, a separate account- or accoulits (herein collectively called the "Construction Account") into which shall be deposited the proceeds from the sale of the Bonds (except such portion thereof as shall be necessary to pay interest on the Bonds during the construction of the Project, which shall be deposited in the Sinking Fund), grant funds and the additional funds, if any, required to assure± payment in full -33- JAN 2 3197/8 • R7/ ;;K �� P1�'.31i)