NOR ANY OTHER PERSON
HAS COMMITTED ANY ACT OR OMISSION AFFORDING THE FEDERAL GOVERNMENT OR ANY STATE
OR LOCAL GOVERNMENT THE RIGHT OF FORFEITURE AS AGAINST THE PROPERTY OR ANY PART
THEREOF.
BORROWER HEREBY COVENANTS AND AGREES NOT TO COMMIT, PERMIT OR SUFFER
TO EXIST ANY ACT OR OMISSION AFFORDING SUCH RIGHT OF FORFEITURE.
SECTION 3.21
TAXES.
BORROWER HAS TIMELY FILED (OR HAS OBTAINED
EFFECTIVE EXTENSIONS FOR FILING) ALL FEDERAL, STATE, LOCAL AND FOREIGN TAX
RETURNS REQUIRED TO BE FILED, IT BEING ACKNOWLEDGED THAT BORROWER IS A
DISREGARDED ENTITY FOR FEDERAL INCOME TAX PURPOSES AND DOES NOT CURRENTLY FILE
ITS OWN TAX RETURNS, AND HAS TIMELY PAID OR MADE ADEQUATE PROVISION FOR THE
PAYMENT OF AL FEDERAL, STATE, LOCAL AND FOREIGN TAXES, CHARGES AND ASSESSMENTS
PAYABLE BY BORROWER.
46
SECTION 3.22
PERMITTED ENCUMBRANCES.
NONE OF THE PERMITTED ENCUMBRANCES,
INDIVIDUALLY OR IN THE AGGREGATE, MATERIALLY INTERFERES WITH THE BENEFITS OF THE
SECURITY INTENDED TO BE PROVIDED BY THIS AGREEMENT, THE SECURITY INSTRUMENT, THE
NOTE AND THE OTHER LOAN DOCUMENTS OR IMPAIRS THE USE OR THE OPERATION OF THE
PROPERTY OR IMPAIRS BORROWER'S ABILITY TO PAY ITS OBLIGATIONS IN A TIMELY
MANNER.
SECTION 3.23
INTENTIONALLY OMITTED.
SECTION 3.24
INTENTIONALLY OMITTED.
SECTION 3.25
FEDERAL RESERVE REGULATIONS.
NO PART OF THE PROCEEDS OF THE
LOAN WILL BE USED BY BORROWER FOR THE PURPOSE OF PURCHASING OR ACQUIRING ANY
"MARGIN STOCK" WITHIN THE MEANING OF REGULATION U OF THE BOARD OF GOVERNORS OF
THE FEDERAL RESERVE SYSTEM OR FOR ANY OTHER PURPOSE WHICH WOULD VIOLATE
REGULATION U OR ANY OTHER REGULATIONS OF SUCH BOARD OF GOVERNORS, OR FOR ANY
PURPOSES PROHIBITED BY APPLICABLE LAW OR BY THE TERMS AND CONDITIONS OF THIS
AGREEMENT, THE SECURITY INSTRUMENT, THE NOTE OR THE OTHER LOAN DOCUMENTS.
SECTION 3.26
INVESTMENT COMPANY ACT.
BORROWER IS NOT (A) AN "INVESTMENT
COMPANY" OR A COMPANY "CONTROLLED" BY AN "INVESTMENT COMPANY", WITHIN THE
MEANING OF THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED; OR (B) SUBJECT TO ANY
OTHER FEDERAL OR STATE LAW OR REGULATION WHICH PURPORTS TO RESTRICT OR REGULATE
ITS ABILITY TO BORROW MONEY.
SECTION 3.27
FRAUDULENT CONVEYANCE.
BORROWER (A) HAS NOT ENTERED INTO
THE LOAN OR ANY LOAN DOCUMENT WITH THE ACTUAL INTENT TO HINDER, DELAY, OR
DEFRAUD ANY CREDITOR AND (B) RECEIVED REASONABLY EQUIVALENT VALUE IN EXCHANGE
FOR ITS OBLIGATIONS UNDER THE LOAN DOCUMENTS.
GIVING EFFECT TO THE LOAN, THE
FAIR SALEABLE VALUE OF BORROWER'S ASSETS EXCEEDS AND WILL, IMMEDIATELY FOLLOWING
THE EXECUTION AND DELIVERY OF THE LOAN DOCUMENTS, EXCEED BORROWER'S TOTAL
LIABILITIES, INCLUDING, WITHOUT LIMITATION, SUBORDINATED, UNLIQUIDATED, DISPUTED
OR CONTINGENT LIABILITIES.
THE FAIR SALEABLE VALUE OF BORROWER'S ASSETS IS AND
WILL, IMMEDIATELY FOLLOWING THE EXECUTION AND DELIVERY OF THE LOAN DOCUMENTS, BE
GREATER THAN BORROWER'S PROBABLE LIABILITIES, INCLUDING THE MAXIMUM AMOUNT OF
ITS CONTINGENT LIABILITIES OR ITS DEBTS AS SUCH DEBTS BECOME ABSOLUTE AND
MATURED.
BORROWER'S ASSETS DO NOT AND, IMMEDIATELY FOLLOWING THE EXECUTION AND
DELIVERY OF THE LOAN DOCUMENTS WILL NOT, CONSTITUTE UNREASONABLY SMALL CAPITAL
TO CARRY OUT ITS BUSINESS AS CONDUCTED OR AS PROPOSED TO