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contractors, servants, employees or licensees of the assignee or sublessee of the City with respect <br /> to the Project, or(v)the Acquisition of the Project or authorization of payment of the costs of the <br /> Acyuisition of the Project, to the extent permitted by law. Indemnification for any tort <br /> mentioned in this Section shall exclude those arising from the willful misconduct or negligence <br /> under the Indenture by the Trustee, and the Authority, their officers and employees. The City <br /> further covenants and agrees to indemnify and save the Trustee and the Authority harmless <br /> against any claim, loss,expense, advance, and liabilities which they may incur arising out of or in <br /> the exercise and performance of their powers and duties under the Indenture and the Installment <br /> Purchase Contract,�including the costs and expenses (including attorneys fees and disbursements) <br /> of defending against any claim of liability or enforcing any remedies, and which are not due to <br /> their negligence or willful misconduct. The City fuRher covenants and agrees to advance to the <br /> Trustee and the Authority the amounts requested as the costs and expenses of such defense. Any <br /> and all special obligations of the City under this Section shall be and remain valid and binding <br /> special obligations of the City notwithstanding the payment in full of the Installment Payments <br /> and the termination of this Installment Purchase Contract or the removal or resignation of the <br /> Trustee pursuant to the Indenture. <br /> Section 5.19. Further Representations Covenants and Warranties of the Citv <br /> The City represents,covenants and warrants to the Authority as follows: <br /> � (a) The City is a duly organized and validly existing body corporate and <br /> politic of the State of California. <br /> (b) The Constitution and the laws of the State of California, and the Charter of . <br /> the City, authorize the City to enter into the Installment Purchase Contract and the Indenture and <br /> to enter into the transactions contemplated thereby and to carry out its obligations under each of <br /> the aforesaid agreements, and the City has duly authorized and executed each of the aforesaid <br /> agreements in accordance with the laws of the State of California. <br /> (c) Neither tlie execution and delivery of the Installment Purchase Contract or <br /> the Indenture nor the fulfillment of or compliance with the terms and conditions hereof or <br /> thereof, nor the consummation of the transactions contemplated hereby or thereby, conflicts with <br /> or results in a breach of the terms, conditions or provisions of any restriction or any agreement or <br /> instrument to which the City is now a party or by which the City is bound, or constitutes a default <br /> under either of the foregoing, or results in the creation or imposition of any lien, charge or <br /> encumbrance whatsoever upon any of the property or assets of the City. <br /> (d) The City has duly authorized and executed this Installment Purchase <br /> Contract and the Indenture in accordance with the laws of the State of California. <br /> (e) The City is empowered to set rates and charges for services provided by <br /> the Enterprise provided to the users of the Enterprise without review or approval by any state or <br /> local governmental agency. <br /> 20 <br /> 338529_i.DOC <br />