Common use of Financial Risk Clause in Contracts

Financial Risk. The Creditor represents, warrants and agrees that the Creditor will not sell or otherwise transfer the Securities unless registered under the Securities Act or in reliance upon an exemption therefrom, and fully understands and agrees that the Creditor must bear the economic risk of his investment in the Securities for an indefinite period of time because, among other reasons, the Securities have not been registered under the Securities Act or under the securities laws of certain states and, therefore, cannot be resold, pledged, assigned or otherwise disposed of unless they are subsequently registered under the Securities Act and under the applicable securities laws of such states or an exemption from such registration is available. The Creditor has the financial ability to bear the economic risk of his investment in the Securities, has adequate means for providing for his current needs and personal contingencies and has no need for liquidity with respect to his investment in the Securities; and