Common use of Valid and Binding Obligation of Obligor Clause in Contracts

Valid and Binding Obligation of Obligor. Each Receivable represents the genuine, legal, valid and binding obligation of the Obligor thereunder and is enforceable by the holder thereof in accordance with its terms, except only as such enforcement may be limited by bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally, and all parties to such contract had full legal capacity to execute and deliver such contract and all other documents related thereto and to grant the security interest purported to be granted thereby. Each Receivable is in full force and effect in accordance with its respective terms. The Receivables represent undisputed bona fide transactions completed in accordance with the terms and provisions contained in the Contract relating thereto. No Receivable is the subject of, and no officer of Seller has any knowledge of, any fact which could give rise to litigation that could affect Purchaser’s’ or Sub-Servicer’s ability to enforce collection or payment of such Receivable.