CONSTITUTE A DEFAULT UNDER ANY MORTGAGE, DEED OF TRUST, LEASE, BANK LOAN,
CREDIT AGREEMENT, OR OTHER INSTRUMENT OR VIOLATE ANY GOVERNMENTAL REQUIREMENTS,
TO WHICH BORROWER IS A PARTY, OR BY WHICH BORROWER MAY BE BOUND OR AFFECTED.
(D)
NO LITIGATION OR DEFAULTS.
EXCEPT FOR THE CURRENT BANKRUPTCY,
AND EXCEPT AS SET FORTH ON SCHEDULE 2.1(H), THERE ARE NO ACTIONS, SUITS OR
PROCEEDINGS PENDING OR, TO THE KNOWLEDGE OF BORROWER, THREATENED AGAINST OR
AFFECTING BORROWER OR THE PROPERTY WHICH WOULD HAVE A MATERIAL ADVERSE EFFECT,
OR INVOLVING THE VALIDITY OR ENFORCEABILITY OF THE LOAN DOCUMENTS OR THE
PRIORITY OF THE LIEN THEREOF, AT LAW OR IN EQUITY; AND BORROWER IS NOT IN
DEFAULT UNDER ANY ORDER, WRIT, INJUNCTION, DECREE OR DEMAND OF ANY COURT OR ANY
ADMINISTRATIVE BODY HAVING JURISDICTION OVER BORROWER.
(E)
FINANCIAL AND OTHER INFORMATION.
THE FINANCIAL STATEMENTS OF
BORROWER PREVIOUSLY OR HEREAFTER DELIVERED TO LENDER FAIRLY AND ACCURATELY
PRESENT, OR WILL FAIRLY AND ACCURATELY PRESENT, THE FINANCIAL CONDITION OF
BORROWER, AS OF THE DATES OF SUCH STATEMENTS,
11
AND NEITHER THIS AGREEMENT NOR ANY DOCUMENT, FINANCIAL STATEMENT, FINANCIAL OR
CREDIT INFORMATION, CERTIFICATE OR STATEMENT REFERRED TO HEREIN OR FURNISHED TO
LENDER BY BORROWER CONTAINS, OR WILL CONTAIN, ANY UNTRUE STATEMENT OF A MATERIAL
FACT OR OMITS, OR WILL OMIT, A MATERIAL FACT, OR IS OR WILL BE MISLEADING IN ANY
MATERIAL RESPECT.
(F)
ERISA.
(A) BORROWER IS NOT AND WILL NOT BE AN "EMPLOYEE
BENEFIT PLAN," AS DEFINED IN §3(3) OF ERISA, SUBJECT TO TITLE I OF ERISA,
(B) NONE OF THE ASSETS OF BORROWER CONSTITUTE OR WILL CONSTITUTE "PLAN ASSETS"
OF ONE OR MORE SUCH PLANS WITHIN THE MEANING OF 29 C.F.R. §2510.3-101,
(C) BORROWER IS NOT AND WILL NOT BE A "GOVERNMENTAL PLAN" WITHIN THE MEANING OF
§3(3) OF ERISA, AND (D) TRANSACTIONS BY OR WITH BORROWER ARE NOT AND WILL NOT BE
SUBJECT TO STATE STATUTES REGULATING INVESTMENT OF, AND FIDUCIARY OBLIGATIONS
WITH RESPECT TO, GOVERNMENTAL PLANS.
(G)
BOUNDARY LINES; CONFORMANCE WITH GOVERNMENTAL REQUIREMENTS AND
RESTRICTIONS.
EXCEPT AS DISCLOSED IN THE SURVEY PROVIDED TO LENDER, THE
EXTERIOR LINES OF THE IMPROVEMENTS ARE, AND AT ALL TIMES WILL BE, WITHIN THE
BOUNDARY LINES OF THE LAND, AND BORROWER HAS EXAMINED AND IS FAMILIAR WITH ALL
APPLICABLE COVENANTS, CONDITIONS, RESTRICTIONS AND RESERVATIONS, AND WITH ALL
APPLICABLE GOVERNMENTAL REQUIREMENTS, INCLUDING BUT NOT LIMITED TO BUILDING
CODES AND ZONING, ENVIRONMENTAL, HAZARDOUS SUBSTANCE, ENERGY AND POLLUTION
CONTROL LAWS, ORDINANCES AND REGULATIONS AFFECTING THE PROPERTY, AND THE
PROPERTY CONFORMS TO AND COMPLIES WITH SAID COVENANTS, CONDITIONS, RESTRICTIONS,
RESERVATIONS AND GOVERNMENTAL REQUIREMENTS.
(H)
UTILITIES, ETC.
TELEPHONE SERVICES, GAS, ELECTRIC POWER, STORM
SEWERS, SANITARY SEWER AND WATER FACILITIES ARE AVAILABLE TO THE BOUNDARIES OF
THE LAND, ADEQUATE TO SERVE THE PROPERTY AND NOT SUBJECT TO ANY CONDITIONS
(OTHER THAN NORMAL CHARGES TO THE UTILITY SUPPLIER) WHICH WOULD LIMIT THE USE OF
SUCH UTILITIES.
ALL STREETS AND EASEMENTS NECESSARY FOR THE OPERATION OF THE
PROPERTY ARE AVAILABLE TO THE BOUNDARIES OF THE PROPERTY.
(I)
COLLATERAL.
BORROWER IS NOW AND SHALL CONTINUE TO BE