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40 <br />o® <br />which the County is a party and which is used or contemplated for <br />use in consummation of the transactions contemplated hereby. <br />(g) The execution and delivery by the County of this <br />Agreement, the Bond, the Loan Agreement and the other agreements <br />contemplated hereby and compliance with the provisions thereof <br />will not conflict with, or constitute on the part of t::e County <br />breach of, or a default under, any existing law, court order or <br />any provision of any legislative act, constitutional or other <br />proceeding relating to the affairs or resolutions, or any <br />agreement, indenture, mortgage, lease or other instrument to <br />which the County is subject or by which it is bound. <br />Section 3. Representations, Wprranties and Agreements <br />by the Proprietor and the Company. (a) The Proprietor represents <br />and warrants to, and agrees with, the Bondholder, the Company and <br />the County as follows: <br />(i) The Proprietor has power to enter into this <br />Agreement, the Loan Agreement, the Personal Guaranty, the Lease <br />and the Lease Assignment, and has duly authorized the execution <br />and delivery of this Agreement, the Loan Agreement, the Personal <br />Guaranty, the Lease and the Lease Assignment. <br />(ii) There is no action, suit, proceeding, inquiry <br />or investigation, at law or in equity, before or by any court, <br />public board or body, pending or, to the best of its knowledge, <br />threatened against or affecting the Proprietor, nor to the best <br />of its knowledge is there any basis therefor, wherein an unfa- <br />vorable decision, ruling or finding would materially adversely <br />affect the obligations contemplated by this Agreement, the Loan <br />Agreement, the Company Guaranty, the Personal Guaranty, the <br />Assignment of Rights, the Mortgage and Security Agreement, the <br />Lease and the Lease Assignment or the assets or the financial con- <br />dition of the Proprietor, or which in any way would adversely <br />affect the validity or enforceability of this Agreement, the Loan <br />Agreement, the Company Guaranty, the Personal Guaranty, the <br />Assignment of Rights, the Mortgage and Security Agreement, the <br />Lease or the Lease Assignment. <br />(iii) The execution and delivery of this Agreement, <br />the Loan Agreement, the Assignment of Rights, the Lease, the Lease <br />Assignment, the Company Guaranty, the Personal Guaranty, the <br />Mortgage and the Security Agreement; the consummation of the <br />transactions contemplated herein and therein; and the fulfillment <br />or compliance with the terms of this Agreement, the Loan Agree- <br />ment, the Assignment of Rights, the Lease, the Lease Assignment, <br />the Company Guaranty, the Personal Guaranty, and the Mortgage and <br />-4- <br />