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SECTION 6.2. REPRESENTATION AND WARRANTIES OF THE CITY. The City represents <br />and warrants to the Developer as of the Effective Date as follows: <br />SECTION 6.2.1. AUTHORITY. The execution, delivery and performance by <br />the City of this Agreement are within its powers and have been duly <br />authorized by all necessary action. <br />SECTION 6.2.2. No CONFLICTS. Neither the execution and delivery of this <br />Agreement, nor the consummation of any of the transactions herein contemplated <br />nor compliance with the terms and provisions hereof will, to the City's actual <br />knowledge, contravene any applicable provision of law, statute, ordinance, rule or <br />regulation to which the City is subject or any judgment, decree, license, order or <br />permit applicable to the City. <br />SECTION 6.2.3. VALID AND BINDING OBLIGATION. This Agreement is the <br />legal, valid and binding obligation of the City, enforceable against the City in <br />accordance with its terms except as limited by applicable relief, liquidation, <br />conservatorship, bankruptcy, moratorium, rearrangement, insolvency, <br />reorganization or similar laws affecting the rights or remedies of creditors <br />generally, or other state laws, as in effect from time to time. <br />SECTION 6.2.4. No PENDING LITIGATION. There is no action, proceeding, <br />inquiry or investigation, at law or in equity, before any court, arbitrator, <br />governmental or other board or official, pending or, to the current actual <br />knowledge of the City, threatened against or affecting the City, threatened against <br />or affecting the City, questioning the validity of any proceedings taken or to be <br />taken by the City in connection with the execution, delivery and perfonnance by <br />the City of this Agreement or seeking to prohibit, restrain or enjoin. the execution, <br />delivery or performance by the City hereof, wherein an unfavorable decision, <br />riling or finding would adversely affect the validity or enforceability of, or the <br />authority or ability of the City to perform its obligations under this Agreement. <br />ARTICLE VII <br />PERSONAL LIABILITY OF PUBLIC OFFICIALS; LIMITATIONS ON CITY <br />OBLIGATIONS <br />SECTION 7.1. PERSONAL LIABILITY OF PUBLIC OFFICIALS. No employee or <br />elected. official of the City shall. be personally responsible for any liability arising under or <br />growing out of this Agreement. <br />SECTION 7.2. LIMITATIONS ON CITY OBLIGATIONS. The Grant Payments made <br />and any other financial obligation of the City hereunder shall be paid solely from lawfully <br />available funds that have been appropriated each year during the Term by the City as <br />provided in this Agreement. Under no circumstances shall the City's obligations <br />hereunder be deemed to create any debt within the meaning of any constitutional or