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<br />ARTICLE VII <br /> <br />ASSIGNMENT AND PAYMENT BY THIRD PARTIES <br /> <br />SECTION 7.01. Assignment by Council. The Borrower expressly acknowledges that this <br />Loan Agreement and the obligations of the Borrower to make payments hereunder (with the <br />exception of certain ofthe Council rights to indemnification, fees, notices and expenses), have been <br />pledged and assigned to the Trustee as security for the Bonds under the Indenture, and that the <br />Trustee shall be entitled to act hereunder and thereunder in the place and stead of the Council <br />whether or not the Bonds are in default. <br /> <br />SECTION 7.02. Assignment by Borrower. This Loan Agreement may not be assigned by <br />the Borrower for any reason without the express prior written consent of the Council, the Bond <br />Insurer and the Trustee. <br /> <br />SECTION 7.03. Payments by the Bond Insurer. The Borrower acknowledges that <br />payment under this Loan Agreement from funds received by the Trustee or Bondholders from the <br />Bond Insurer do not constitute payment under this Loan Agreement for the purposes hereof or <br />fulfillment of its obligations hereunder. <br /> <br />SECTION 7.04. Payments by the Surety Bond Provider. The Borrower acknowledges <br />that payment under this Loan Agreement from funds received by the Trustee or Bondholders from <br />the Surety Bond Provider do not constitute payment under this Loan Agreement for the purposes <br />hereof or fulfillment of its obligations hereunder. <br /> <br />24 <br />