Common use of Acknowledgement of Obligations Clause in Contracts

Acknowledgement of Obligations. The Borrower acknowledges that, as of May ------------------------------ 17, 2001, the Borrower is indebted to the Lender in the amount of $12,641,686.82 plus applicable residuals, fees, costs, late charges and expenses and that such obligations are absolute and unconditional and are the legal, valid and binding obligations of the Borrower without offset, defense or counterclaim, and interest, costs, and expenses continue to accrue with respect thereto.