Common use of Enforceability of Collateral Clause in Contracts

Enforceability of Collateral. To the extent the Collateral consists of Accounts, Chattel Paper, or General Intangibles, the Collateral is legally enforceable in accordance with its terms, is genuine, and complies with applicable laws concerning form, content and manner of preparation and execution, and all persons appearing to be obligated on the Collateral have authority and capacity to contract and are in fact obligated as they appear to be on the Collateral. At the time any Account becomes subject to a security interest in favor of Lender, the Account shall be a good and valid Account representing an undisputed, bona fide indebtedness incurred by the account debtor, and in the case of accounts receivable, for merchandise held subject to delivery instructions or theretofore shipped or delivered pursuant to a contract of sale, or for services theretofore performed by Grantor with or for the account debtor there shall be no setoffs or counterclaims against any such account; and no agreement under which any deductions or discounts may be claimed shall have been made with the account debtor except those disclosed to Lender in writing.

Enforceability of Collateral. To the extent extend the Collateral consists of Accountsaccounts, Chattel Paperchattel paper, or General Intangiblesgeneral intangibles, the Collateral is legally enforceable in accordance with its terms, is it genuine, and complies with applicable laws concerning form, content and manner of preparation and execution, and all persons appearing to be obligated on the Collateral have authority and capacity to contract and are in fact obligated as they appear to be on the Collateral. At the time any Account account becomes subject to a security interest in favor of LenderRaab, the Account account shall be a good and goox xxd valid Account account representing an undisputed, bona fide indebtedness incurred by the account debtor, and in the case of accounts receivable, for merchandise held subject to delivery instructions or theretofore therefore shipped or delivered pursuant to a contract of sale, or for services theretofore therefore performed by Grantor with or for the account debtor debtor; there shall be no setoffs or counterclaims against any such accountaccount as the account exists at the time of execution hereof; and no agreement under which any deductions or discounts may be claimed shall have been made with the account debtor except those disclosed to Lender Raab in writing.

Enforceability of Collateral. To the extent the Collateral consists con- sists of Accountsaccounts, Chattel Papercontract rights, chattel paper, or General Intangiblesgeneral intan- gibles, the Collateral is legally enforceable in accordance with its terms, is genuine, and complies with applicable laws concerning form, content and manner of preparation and execution, and all persons appearing to be obligated on the Collateral have authority and capacity to contract and are in fact obligated as they appear to be on the Collateral. At the time any Account account becomes subject to a security interest in favor of Lender, the Account account shall be a good and valid Account account representing an undisputed, bona fide indebtedness incurred by the account debtor, and in the case of accounts receivable, for merchandise held subject to delivery instructions or theretofore shipped or delivered pursuant to a contract of sale, or for services theretofore performed by Grantor with or for the account debtor debtor; there shall be no setoffs or counterclaims against any such account; and no agreement under which any deductions or discounts may be claimed shall have been made with the account debtor except those disclosed to Lender in writing.