Neither Borrower nor Owner is a party to any agreement or instrument or subject to any restriction which might materially and adversely affect Borrower or any Individual Owner, any Individual Property or the Collateral, or Borrower’s or Owner’s business, properties or assets, operations or condition, financial or otherwise. Neither Borrower nor any Individual Owner is in default in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any Permitted Encumbrance or any other agreement or instrument to which it is a party or by which it or any Individual Property or the Collateral is bound, or with respect to any order or decree of any court or any order, regulation or demand of any Governmental Authority, which default (individually or when aggregated with any and all such defaults) is reasonably likely to have consequences that would materially and adversely affect the condition (financial or other) or operations of Borrower or any Individual Owner or their respective properties or is reasonably likely to have consequences that would materially and adversely affect its performance hereunder.