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EM CM IM. The Bonds are issued pursuant to and in full compliance with the Constitution and laws of the State of Arkansas, including particularly Act No. 238 of the Acts of Arkansas of 1971, as amended, and pursuant to Ordinance No. 9!51 of the City, duly adopted and approved on the /3 day of 1981 (the "Authorizing Ordinance"), and do not constitute an indebtedness of the City within any constitutional or statutory limitation. The Bonds are not general obligations of the City, but are special obligations payable solely from the revenues derived from the operation of the System and from the proceeds of refunding bonds to be hereafter issued. An amount of System revenues sufficient to pay the interest on and Trustees and Paying Agent's fees con- cerning the Bonds has been duly pledged and set aside into the Sanitation Facilities Bond Fund (.the "Bond Fund") created by the Authorizing Ordinance. There is no pledge of System revenues to, and no provision for setting aside of revenues into the Bond Fund for, the payment of principal of the Bonds, but the City covenants that the principal of the Bonds will be paid from the proceeds of refunding bonds to be issued prior to maturity of the Bonds as specified in the Authorizing Ordinance, Reference is hereby made to the Authorizing Ordinance for a detailed statement of the terms and conditions upon which the Bonds are issued, of the nature and extent of the security for the Bonds and the rights and obligations of the City, the Trustee and the bondholders. The City has fixed and has covenanted and agreed to maintain rates and charges for the services of the System which shall be sufficient at all times to at least provide for the payment of the interest on the Bonds, maintain the debt service reserve at the required level, provide for the payment of the reasonable expenses of operation and main- tenance of the System, and make the required payments into the Depreciation Fund. The City further covenants that from and after the issuance of refunding bonds to provide for the payment of the