Common use of Representations and Warranties of the Debtor Clause in Contracts

Representations and Warranties of the Debtor. The Debtor represents and warrants to the Vendors as follows: (a) The Debtor now owns or will own the Collateral, as the case may be, free and clear of any prior lien, security interest or encumbrance save and except for the security interest granted hereby and for those encumbrances as shown in Schedule "B" which have been validly perfected ("Permitted Encumbrances"); (b) This Security Agreement has been properly authorized and constitutes a legally valid and binding obligation of the Debtor; (c) The authorization, creation, execution and delivery of this Security Agreement and compliance with its terms (i) does not and shall not contravene any applicable law, regulation, rule, order, judgment or injunction or the charter documents, by-laws or any unanimous shareholders' agreement of the Debtor; and (ii) does not and shall not result in a breach of or a default under any indenture, instrument, lease, agreement or undertaking to which the Debtor is a party or by which it or the Collateral is or may become bound.