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0 40 40 ARTICLE III COVENANTS, SPECIAL FU„DS AND APPLICATION THEREOF 4 ® 3.01 Bonds Not to Be Indebtedness of Issuer. Neither the Bonds nor t_le coupons attached r_}1eLero Shall be or constitute obli.gat_i.ons or indebtedness of the Issuer as "bonds" within the meaning of Art_. VII, 512, Fla. Const. (1968), but shall be payable solely from and secured by a prior lien upon and pledge of the Pledged Funds as herein provided. No owner or holder of any Bond or coupon appertaining thereto shall ever have the right to compel the exercise of any ad valorem taxing power to pay such Bond or coupon or Operating Expenses, or be entitled to payment-_ of such Bond or coupon from any moneys of the Issuer except_ from the Pledged Funds in the manner provided herein. 3.02 Security for Bonds. The payment_ of the principal of and interest_ on the Bonds small be secured forthwith equally and ratably by a pledge of and prior lien upon the Pledged Funds. The Issuer does hereby irrevocably pledge the Pledged Funds to the payment_ of the principal of and interest_ on the Bonds and to the payment into the Sinking Fund at the times pro- vided of the sums required to secure to t_he holders of the Bonds the payment of the principal thereof 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 i. t_ will establish a separate account: or accounts into which shall be deposited the proceeds from the sale of t_he Bonds (except such portion thereof as shall be necessary to pay interest on the Bonds during the acquisition and 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 of the Cost: of the Project_withdrawals from the Construction Account shall be made only for such purposes as shall have been previously specified in the Project Cost estima- tes and as shall be approved by the Issuer's consulting Engineers for the Project. The Issuer's share of any liquidated damages or other moneys paid by defaulting contractors or rhei.r sureties, and all proceeds of insurance compensating for damages to the Project_ during the period of acqui.si.t:i.on and construction, shall be depo- sited in the Construction Account: to assure completion of the Project. Moneys in the Construction Account shall be secured by the depository bank in accordance wi.t:il U.S. Treasury Department Circular 176 and i.n the manner prescribed by the laws of the -- 20-