TO BE, CONDUCTED.
4.2
VALIDITY OF LOAN DOCUMENTS.
THE EXECUTION,
DELIVERY, AND PERFORMANCE BY BORROWER OF THE LOAN DOCUMENTS, (I) IF BORROWER, OR
ANY SIGNATORY WHO SIGNS ON ITS BEHALF, IS A CORPORATION, GENERAL PARTNERSHIP,
LIMITED PARTNERSHIP, JOINT VENTURE, TRUST, OR OTHER TYPE OF BUSINESS
ASSOCIATION, AS THE CASE MAY BE, ARE WITHIN BORROWER'S POWERS AND HAVE BEEN DULY
AUTHORIZED BY BORROWER'S BOARD OF DIRECTORS, SHAREHOLDERS, PARTNERS, VENTURERS,
TRUSTEES, OR OTHER NECESSARY PARTIES, AND ALL OTHER REQUISITE ACTION FOR SUCH
AUTHORIZATION HAS BEEN TAKEN, (II) HAVE RECEIVED ANY AND ALL REQUISITE PRIOR
GOVERNMENTAL APPROVALS IN ORDER TO BE LEGALLY BINDING AND ENFORCEABLE IN
ACCORDANCE WITH THE TERMS THEREOF, AND (III) WILL NOT VIOLATE, BE IN CONFLICT
WITH OR CONSTITUTE (WITH DUE NOTICE OR LAPSE OF TIME, OR BOTH) A DEFAULT UNDER
OR VIOLATION OF ANY LEGAL REQUIREMENT OR RESULT IN THE CREATION OR IMPOSITION OF
ANY LIEN, CHARGE, OR ENCUMBRANCE OF ANY NATURE WHATSOEVER UPON ANY OF BORROWER'S
OR GUARANTOR'S PROPERTY OR ASSETS, EXCEPT AS CONTEMPLATED BY THE PROVISIONS OF
THE LOAN DOCUMENTS.
THE LOAN DOCUMENTS CONSTITUTE THE LEGAL, VALID, AND BINDING
OBLIGATIONS OF BORROWER, GUARANTOR, AND OTHERS OBLIGATED UNDER THE TERMS OF THE
LOAN DOCUMENTS, ENFORCEABLE IN ACCORDANCE WITH THEIR RESPECTIVE TERMS.
4.3
INFORMATION.
ALL INFORMATION, FINANCIAL
STATEMENTS, REPORTS, PAPERS, AND DATA GIVEN OR TO BE GIVEN TO LENDER WITH
RESPECT TO BORROWER OR GUARANTOR OR THE MORTGAGED PROPERTY (TO BORROWER'S
KNOWLEDGE, IF PREPARED BY AN UNAFFILIATED THIRD PARTY) ARE, OR AT THE TIME OF
DELIVERY WILL BE, TAKEN AS A WHOLE, ACCURATE, COMPLETE, AND CORRECT IN ALL
MATERIAL RESPECTS AND DO NOT, OR WILL NOT, OMIT ANY FACT, THE INCLUSION OF WHICH
IS NECESSARY TO PREVENT THE FACTS CONTAINED THEREIN FROM BEING MATERIALLY
MISLEADING.
SINCE THE DATE OF THE FINANCIAL STATEMENTS OF BORROWER OR ANY
GUARANTOR HERETOFORE FURNISHED TO LENDER, NO MATERIAL ADVERSE EFFECT HAS
OCCURRED, AND EXCEPT AS HERETOFORE DISCLOSED IN WRITING TO LENDER, NEITHER
BORROWER NOR GUARANTOR HAS INCURRED ANY MATERIAL LIABILITY, DIRECT OR INDIRECT,
FIXED OR CONTINGENT.
4.4
BUSINESS PURPOSES.
THE LOAN EVIDENCED BY
THE NOTE IS SOLELY FOR THE PURPOSE OF CARRYING ON OR ACQUIRING THE BUSINESS OF
BORROWER, AND IS NOT FOR PERSONAL, FAMILY, HOUSEHOLD, OR AGRICULTURAL PURPOSES.
17
4.5
MAILING ADDRESS.
BORROWER'S MAILING
ADDRESS, AS SET FORTH HEREIN OR AS CHANGED PURSUANT TO THE PROVISIONS HEREOF, IS
TRUE AND CORRECT.
4.6
NO RELIANCE ON LENDER.
BORROWER IS
EXPERIENCED IN THE OWNERSHIP AND OPERATION OF PROPERTIES SIMILAR TO THE
MORTGAGED PROPERTY, AND BORROWER AND LENDER HAVE AND ARE RELYING SOLELY UPON
BORROWER'S EXPERTISE AND BUSINESS PLAN IN CONNECTION WITH THE CONSTRUCTION OF
THE IMPROVEMENTS AND OWNERSHIP AND OPERATION OF THE MORTGAGED PROPERTY.
BORROWER IS NOT RELYING ON LENDER'S EXPERTISE OR BUSINESS ACUMEN IN CONNECTION
WITH THE MORTGAGED PROPERTY.
4.7
NO LITIGATION.
TO THE BEST OF BORROWER'S
KNOWLEDGE, AFTER DUE INVESTIGATION AND INQUIRY, THERE ARE NO (I) ACTIONS, SUITS,
OR PROCEEDINGS, AT LAW OR IN EQUITY, BEFORE ANY GOVERNMENTAL AUTHORITY OR
ARBITRATOR PENDING OR THREATENED AGAINST OR AFFECTING BORROWER, GUARANTOR OR
INVOLVING THE