Common use of Action, Binding Obligations Clause in Contracts

Action, Binding Obligations. Each Loan Party has all necessary organizational power, authority and legal right to execute, deliver and perform its obligations under each of the Loan Documents to which it is a party and to consummate the transactions contemplated thereby. The execution, delivery and performance by each Loan Party of each of the Loan Documents to which it is a party has been duly authorized by all necessary organizational action on its part. Each Loan Document has been duly and validly executed and delivered by each Loan Party and constitutes, or when executed and delivered, will constitute, a legal, valid and binding obligation of such Loan Party, enforceable against such Loan Party in accordance with its terms, subject to the Bankruptcy Exceptions.