Common use of Contracts with Clients Clause in Contracts

Contracts with Clients. (i) Each of IJL and its Subsidiaries is in compliance with the terms of each Contract with any Client, and each such Contract is in full force and effect with respect to the applicable Client. There are no disputes pending or threatened with any Client under the terms of any such Contract or with any former Client other than disputes arising in the ordinary course of business of IJL and its Subsidiaries. IJL has made available to Wachovia true and complete copies of all advisory, sub-advisory and similar agreements with any Clients. (ii) Except as Previously Disclosed, each extension of credit by IJL or any of its Subsidiaries to any Client (A) is in full compliance with Regulation T of the Federal Reserve System or any substantially similar regulation of any governmental or regulatory agency or authority, (B) is fully secured and (C) IJL or one or more of its Subsidiaries, as the case may be, has a first priority perfected security interest in the collateral securing such extension of credit.