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hereof, the City shall not be obligated to comply with this covenant if it obtains an opinion that <br />such failure to comply will not adversely affect the excludability for federal income tax purposes <br />from gross income of the interest. <br />(e) The City covenants that the projects funded with the proceeds of the Bonds will <br />not be sold or otherwise disposed in a transaction resulting in the receipt by the City of cash or <br />other compensation, unless the City obtains an opinion of nationally -recognized bond counsel <br />that such sale or other disposition will not adversely affect the tax-exempt status of the Bonds. <br />For purposes of the foregoing, the portion of the property comprising personal property and <br />disposed in the ordinary course shall not be treated as a transaction resulting in the receipt of <br />cash or other compensation. For purposes hereof, the City shall not be obligated to comply with <br />this covenant if it obtains a legal opinion that such failure to comply will not adversely affect the <br />excludability for federal income tax proposes from gross income of the interest. <br />ARTICLE VIII <br />LIABILITY OF CITY <br />Section 8.1. Liability of City. <br />(a) Neither the full faith and credit nor the general taxing power of the City is <br />pledged to the payment of the Bonds, and no City taxes, fee or revenues from any source are <br />pledged to the payment of, or available to pay any portion of, the Bonds or any other obligations <br />relating to the District. The City shall never be liable for any obligations relating to the Bonds or <br />other obligations relating to the District, other than as specifically provided for in this Indenture. <br />(b) The City shall not incur any responsibility in respect of the Bonds or this <br />Indenture other than in connection with the duties or obligations explicitly herein or in the Bonds <br />assigned to or imposed upon it. The City shall not be liable in connection with the performance <br />of its duties hereunder, except for its own willful default or act of bad faith. The City shall not be <br />bound to ascertain or inquire as to the performance or observance of any of the terns, conditions <br />covenants or agreements of the Trustee herein or of any of the documents executed by the <br />Trustee in connection with the Bonds, or as to the existence of a default or event of default <br />thereunder. <br />(c) In the absence of bad faith, the City may conclusively rely, as to the truth of the <br />statements and the correctness of the opinions expressed therein, upon certificates or opinions <br />furnished to the City and conforming to the requirements of this Indenture. The City shall not be <br />liable for any error of judgment made in good faith unless it shall be proved that it was negligent <br />in ascertaining the pertinent facts. <br />(d) No provision of this Indenture, the Bonds, the Assessment Ordinance, or any <br />agreement, document, instrument, or certificate executed, delivered or approved in connection <br />with the issuance, sale, delivery, or administration of the Bonds (collectively, the "Bond <br />Documents"), shall require the City to expend or risk its own general funds or other funds or <br />otherwise incur any financial liability (other than with respect to the Pledged Revenues) in the <br />51 <br />