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2 0 � 4 7 l:pon paymenc in iull bv the Cicy of basic rents payabte under chis agreement, the City shall acquire full tegal titte to the Project �nd Heartland shall zsecute and deliver to the City a special warranty deed or such ocher instrument of conveyance as may then be required to convey unencumbered fee title and zxclusive ownership, possession and use of che Project to rhe Ciry without demand or tiircher action on the part of the City. Heartland a�ees th�t all tPases. man- a�ement contraccs and other similar encumbranc.e.c �,n the Ps�j�t shall terminate t��n the Citv comptetin� qayment of basic rents due und�r this asreement. ihe City reserves the nght to pre- pay basic rentals due under chis a�eement at any time. For purposes of this :��eemenc basic rents shal! be conctusively deemed to have been paici in full when all Building Bonds issued to pay costs uf the Praject have been paid in fuli or under the terms af the Building Bond Indenture are no lun�er outstandin�. 9. COVEN�YTS OF CITY. The Cicy covenants chat it is a city of the first class of the Stace of �ebraska, organized under �ieb. Rev. S[at., Chapter 16, as amended, with iull and lawful power and authoriry to enter into this agreement as a lease pursuant to Neb. Rev. Stat.. � 19-3421 and that it has taken all actions necessary to la�vfully enter into this agreement. T'he City covenanu that the lease rentals payable under this .�greement do not exceed any limitatioa imposed by law. The City covenants that throughout the term of this A�eement it will observe all taxa cion, bu�i,et and spendin� limitations now or hereai"tez imposed by law. The Ciry covenants•and agrees that it shall lew and colIect annually taxes, which may be either ad valorem taxes upon all the taxab[e property in the Cit�r under Neb. Rev. Stat.. � 16-702 (as now or hereai�er amended or any successor statutory provision ther�to} or sales and use taxes under �Teb. Rev. Stat. §§77- ?7,1�2 to 77-?7,148 (as now or hereafter amended or any successor statutory provisi�n thereto) sut�icient in rate and amount ta pay the basic rents and all additional rent due hereunder. Receipts from such taxes in each year sufficient to pay the basic rent due hereunder shall be placed in a separate �ccount uf the City's �eneral fund or atherwise se�egated and applied to make the payments of basic rent due hereunder. The City covenants to include each tiscal year auring [he term of this A�eemenc in its annual budget appropriations sufficient to pay the amounts due hereunder during each budget year on the understanding that such commitment is a continuing contractual obligation of the City and not subject to discretian as to each such yeaz, a11 in accordance with the authorization For contractuat cornmitments set forth in �ieb. Rev. Stat.. � 19-?421. I'he City covenants that it shall not take or omit any action that would have the effect of causin� interest on the Buildin� Bonds issued by Heartland for the Pmject to be no longer zxcludable from �oss income under the Code. The City covenants that it will takz any action necessary to establish zxemption of the Projecc from property taxes. The City covenants chat it �vill, before the Buildin� Bonds are issued, adopt a resolution statin; that it will accept ritle ta the Project whert the Building Bonds are dischar;ed consistent with the requirements of Rev. Proc. 82-26. 1 l')