Borrower Acknowledgments. By signing this Agreement, the Borrower acknowledges and agrees that the Designated Defaults currently exist on the part of the Borrower under the Credit Agreement and that as a result of such Designated Defaults, the Lender could, in the absence of the Lender's agreement to forbear as set forth in this Agreement, in its sole discretion, demand immediate payment or otherwise take collection action with respect to the Indebtedness. The Borrower further acknowledges and agrees that the Indebtedness is the valid and enforceable obligation of the Borrower and is not subject to any defenses or rights of set off of any kind or nature and that all of the Indebtedness is secured by a valid and perfected lien in the Collateral.
Appears in 2 contracts
Sources: Forbearance Agreement and First Amendment to Credit Agreement (Allis Chalmers Corp), Forbearance Agreement and Second Amendment (Allis Chalmers Corp)