6E(3) Blackthorn Golf Course Financing Agreement

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Section 3.8. Representations Regarding Commercial Tort Claims. Schedule 3.9 sets forth a true and con-ect list of al] Commercial Tort Claim and true, complete and accurate descriptions of the facts and circumstances with respect to each such claim sufficient in detail for the Secured Party to properly perfect any security interests in its favor with respect thereto. Section 3.9. Information Supplied by Debtor. The debtor represents and warrants that the information which the debtor has supplied or hereafter supplies to the secured party is true and coi-~•ect. Section 3.10. Representation Concerning Debtor's Authority. Debtor has authority to enter into this agreement, and any person signing it on debtor's behalf does so with the authority of the debtor. Section 3.11. Authorization to File Financing Statement. The debtor authorizes the secured party to file financing statements appropriate to perfect and continue the security interest created by this security agreement, provided that such financing statements state that they are filed in accordance with this security agreement. ARTICLE IV Agreements Concerning Accounts Section 4.1. Location. The Bon•ower will give the Secured Party written notice of each office of the Boi•~•ower at which records of the Bon•ower relative to Accounts are kept. Except where such notice is given, all records of the Borrower relative to Accounts are and will be kept at the chief executive offices of the Borrower. Section 4.2. Returns and Repossessions. Prior to the occurrence of a Default or Unmatured Default, the Bon•ower may grant, in the ordinary course of business, to any Account Debtor, any rebate, refund or adjustment to which such Account Debtor maybe lawfully entitled and may accept, in connection therewith, the return of Goods. the sale or lease of which shall have given rise to the obligation of the Account Debtor; provided, however, that if any material amount of Inventory, the sale of which gave rise to an Account, is returned to or repossessed by the Boi7•ower outside the ordinary course of business, the Bo17~ower shall promptly report any such return or repossession to the Secured Party, and the Bon•ower shall, unless it receives contrary instructions ti•om the Seew-ed Party, dispose of the same in accordance with sound business practices; subject, however, to the Secured Party's security interest therein and in any Proceeds arising from the disposition thereof. After the occurrence of a Default or an Unmatured Default, no discount, credit or allowance shall be granted by the Bon•ower to any Account Debtor, and no return of Goods shall be accepted by the Bon-ower, without the Secured Party's prior written consent. Section 4.3. Schedule of Accounts. Upon request by the Secured Party, the Borrower will, from time to tune, deliver to the Secured Party a schedule identifying each Account (a 4