BY SUCH PLEDGED MORTGAGES; AND EACH SUCH
ASSIGNMENT AND ALLOCATION HAS BEEN REFLECTED IN THE BOOKS AND RECORDS OF THE
COMPANY.
(J)
EACH PLEDGED MORTGAGE IN EXCESS OF TWO HUNDRED FIFTY THOUSAND AND
NO/100 DOLLARS ($250,000.00) IS SUPPORTED BY AN APPRAISAL THAT MEETS THE
APPRAISAL REQUIREMENTS OF FNMA OR FHLMC (IN THE CASE OF RESIDENTIAL MORTGAGED
PROPERTY), OR THE OFFICE OF THRIFT SUPERVISION FOR THE TYPE OF MORTGAGED
PROPERTY SECURING THAT PLEDGED MORTGAGE; OR, ALTERNATIVELY, SUCH PLEDGED
MORTGAGE IS ELIGIBLE FOR PURCHASE OR IS GUARANTEED OR INSURED BY A U.S.
GOVERNMENT AGENCY OR A U.S. GOVERNMENT SPONSORED ENTERPRISE.
29
5.13
RICO.
THE COMPANY IS NOT IN VIOLATION OF ANY LAWS, STATUTES OR
REGULATIONS, INCLUDING, WITHOUT LIMITATION, RICO, WHICH CONTAIN PROVISIONS WHICH
COULD POTENTIALLY OVERRIDE LENDER'S SECURITY INTEREST IN THE COLLATERAL.
5.14
PROPER NAMES.
THE COMPANY DOES NOT OPERATE IN ANY JURISDICTION
UNDER A TRADE NAME, DIVISION, DIVISION NAME OR NAME OTHER THAN THOSE NAMES SET
FORTH ON EXHIBIT "I" ATTACHED HERETO AND ALL SUCH NAMES INCLUDED ON EXHIBIT "I"
ARE UTILIZED BY THE COMPANY ONLY IN THE JURISDICTIONS LISTED THEREIN.
5.15
DIRECT BENEFIT FROM LOANS.
THE COMPANY HAS RECEIVED, OR, UPON THE
EXECUTION AND FUNDING THEREOF, WILL RECEIVE (A) DIRECT AND INDIRECT BENEFIT FROM
THE MAKING AND EXECUTION OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS TO WHICH
IT IS A PARTY, AND (B) FAIR AND INDEPENDENT CONSIDERATION FOR THE ENTRY INTO,
AND PERFORMANCE OF, THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS TO WHICH IT IS A
PARTY.
CONTEMPORANEOUSLY WITH THE DISBURSEMENTS OF EACH ADVANCE BY THE LENDER
TO THE COMPANY, ALL SUCH PROCEEDS WILL BE USED TO FINANCE THE ORIGINATION OR
PURCHASE OF ELIGIBLE MORTGAGE LOANS.
5.16
LOAN DOCUMENTS DO NOT VIOLATE OTHER DOCUMENTS.
NEITHER THE
EXECUTION AND DELIVERY BY THE COMPANY OF THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT TO WHICH IT IS A PARTY NOR THE CONSUMMATION OF THE TRANSACTIONS HEREIN
AND THEREIN CONTEMPLATED, NOR THE PERFORMANCE OF, OR COMPLIANCE WITH, THE TERMS
AND PROVISIONS HEREOF AND THEREOF, DOES OR WILL CONTRAVENE, BREACH OR CONFLICT
WITH ANY PROVISION OF EITHER OF ITS ARTICLES OF INCORPORATION OR BY-LAWS, OR ANY
APPLICABLE LAW, STATUTE, RULE OR REGULATION OR ANY JUDGMENT, DECREE, WRIT,
INJUNCTION, FRANCHISE, ORDER OR PERMIT APPLICABLE TO THE COMPANY OR ITS ASSETS
OR PROPERTIES, OR DOES OR WILL CONFLICT OR BE INCONSISTENT WITH, OR DOES OR WILL
RESULT IN ANY BREACH OR DEFAULT OF, ANY OF THE TERMS, COVENANTS, CONDITIONS OR
PROVISIONS OF, OR CONSTITUTE A DEFAULT UNDER, OR RESULT IN THE CREATION OR
IMPOSITION OF ANY LIEN UPON ANY OF THE PROPERTY OR ASSETS OF THE COMPANY
PURSUANT TO THE TERMS OF ANY INDENTURE, MORTGAGE, DEED OF TRUST, LOAN AGREEMENT,
OR OTHER INSTRUMENT TO WHICH THE COMPANY IS A PARTY OR BY WHICH THE COMPANY OR
ANY OF ITS PROPERTY MAY BE BOUND, THE CONTRAVENTION, CONFLICT, INCONSISTENCY,
BREACH OR DEFAULT OF WHICH WILL HAVE A MATERIALLY ADVERSE EFFECT ON THE
COMPANY'S CONDITION, FINANCIAL OR OTHERWISE, OR AFFECT ITS ABILITY TO PERFORM,
PROMPTLY AND FULLY, ITS