REFUSAL, OPTION OR OTHER
CONTRACTUAL RIGHT TO PURCHASE SUCH MORTGAGED PROPERTY OR INTEREST THEREIN.
(E)
NONE OF THE REAL OR PERSONAL PROPERTY OWNED BY THE BORROWER OR ANY
SUBSIDIARY IS SUBJECT TO ANY LIEN EXCEPT AS PERMITTED IN SECTION 6.02.
SECTION 3.06.
LITIGATION AND ENVIRONMENTAL MATTERS.
(A)
THERE ARE NO ACTIONS,
SUITS, INVESTIGATIONS OR PROCEEDINGS BY OR BEFORE ANY ARBITRATOR, GOVERNMENTAL
AUTHORITY OR SUPERVISORY ORGANIZATION PENDING AGAINST OR, TO THE KNOWLEDGE OF
THE
54
BORROWER OR ANY SUBSIDIARY, THREATENED AGAINST OR AFFECTING THE BORROWER OR ANY
SUBSIDIARY (I) AS TO WHICH THERE IS A REASONABLE POSSIBILITY OF AN ADVERSE
DETERMINATION AND THAT, IF ADVERSELY DETERMINED, COULD REASONABLY BE EXPECTED,
INDIVIDUALLY OR IN THE AGGREGATE, TO RESULT IN A MATERIAL ADVERSE EFFECT (OTHER
THAN THE DISCLOSED MATTERS) OR (II) THAT INVOLVE ANY OF THE LOAN DOCUMENTS OR
THE TRANSACTIONS.
(B)
EXCEPT WITH RESPECT TO ANY OTHER MATTERS THAT, INDIVIDUALLY OR IN THE
AGGREGATE, COULD NOT REASONABLY BE EXPECTED TO RESULT IN A MATERIAL ADVERSE
EFFECT, NEITHER THE BORROWER NOR ANY SUBSIDIARY (I) HAS FAILED TO COMPLY WITH
ANY ENVIRONMENTAL LAW OR TO OBTAIN, MAINTAIN OR COMPLY WITH ANY PERMIT, LICENSE
OR OTHER APPROVAL REQUIRED UNDER ANY ENVIRONMENTAL LAW, (II) HAS BECOME SUBJECT
TO ANY ENVIRONMENTAL LIABILITY, (III) HAS RECEIVED NOTICE OF ANY CLAIM WITH
RESPECT TO ANY ENVIRONMENTAL LIABILITY OR (IV) KNOWS OF ANY BASIS FOR ANY
ENVIRONMENTAL LIABILITY.
(C)
EXCEPT FOR THE DISCLOSED MATTERS, NEITHER THE BORROWER NOR ANY REGULATED
SUBSIDIARY HAS RECEIVED ANY EXTRAORDINARY SUPERVISORY LETTER FROM, OR ADOPTED
ANY RESOLUTIONS AT THE REQUEST OF, ANY SUPERVISORY ORGANIZATION OR GOVERNMENTAL
AUTHORITY CHARGED WITH THE SUPERVISION OR REGULATION OF SUCH SUBSIDIARY.
SECTION 3.07.
COMPLIANCE WITH LAWS AND AGREEMENTS.
EACH OF THE BORROWER AND
THE SUBSIDIARIES IS IN COMPLIANCE WITH (A) ALL MATERIAL REQUIREMENTS OF LAW
APPLICABLE TO IT OR ITS PROPERTY AND (B) ALL INDENTURES, AGREEMENTS AND OTHER
INSTRUMENTS BINDING UPON IT OR ITS PROPERTY, EXCEPT, IN THE CASE OF CLAUSE (B),
WHERE THE FAILURE TO DO SO, INDIVIDUALLY OR IN THE AGGREGATE, COULD NOT
REASONABLY BE EXPECTED TO RESULT IN A MATERIAL ADVERSE EFFECT.
NO DEFAULT HAS
OCCURRED AND IS CONTINUING.
SECTION 3.08.
INVESTMENT COMPANY STATUS.
NONE OF THE BORROWER OR ANY
SUBSIDIARY IS AN "INVESTMENT COMPANY" AS DEFINED IN, OR SUBJECT TO REGULATION
UNDER, THE INVESTMENT COMPANY ACT OF 1940.
SECTION 3.09.
TAXES.
EACH OF THE BORROWER AND THE SUBSIDIARIES HAS TIMELY
FILED OR CAUSED TO BE FILED ALL TAX RETURNS AND REPORTS REQUIRED TO HAVE BEEN
FILED AND HAS PAID OR CAUSED TO BE PAID ALL TAXES REQUIRED TO HAVE BEEN PAID BY
IT, EXCEPT (A) ANY TAXES THAT ARE BEING CONTESTED IN GOOD FAITH BY APPROPRIATE
PROCEEDINGS AND FOR WHICH THE BORROWER OR SUCH SUBSIDIARY, AS APPLICABLE, HAS
SET ASIDE ON ITS BOOKS ADEQUATE RESERVES OR (B) TO THE EXTENT THAT THE FAILURE
TO DO SO COULD NOT REASONABLY BE EXPECTED TO RESULT IN A MATERIAL ADVERSE
EFFECT.
SECTION 3.10.
ERISA.
NO ERISA EVENT HAS OCCURRED OR IS REASONABLY EXPECTED TO
OCCUR THAT, WHEN TAKEN