Common use of Litigation or Proceeding Clause in Contracts

Litigation or Proceeding. No litigation is pending, or to the best of Seller’s knowledge, threatened, and no investigation, inquiry or governmental proceeding is pending or, to the best of Seller’s knowledge, threatened against the FBR Series Funds or against Seller or its Affiliates and affecting the FBR Series Funds before any court, arbitrator or federal, state, local or foreign governmental or regulatory agency or authority or self-regulatory authority (including, but not limited to, the Commission, the Commodities Futures Trading Commission and the Internal Revenue Service) that would be reasonably likely to materially and adversely affect the business operations or financial condition of the FBR Series Funds or materially delay, materially hinder or prohibit the solicitation of proxies from shareholders of the FBR Series Funds.