Borrower is not a party to any agreement or instrument or subject to any restriction which would materially adversely affect Borrower or the Property, or Borrower’s business, properties, operations or condition, financial or otherwise. Borrower is not in default (beyond the expiration of any applicable notice and/or cure periods) in any material respect in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any Permitted Encumbrance or any other written agreement or instrument to which it is a party or by which it or the Property is bound.