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6.5 Liens. The County shall not directly or indirectly <br /> create, incur, assume or suffer to exist any mortgage, pledge, <br /> lien, charge, security interest, encumbrance or claim on or with <br /> respect to the Project, or any interest therein, except for <br /> Permitted Encumbrances. The County shall promptly, at its own <br /> expense, take such action as may be necessary to duly discharge any <br /> such mortgage, pledge, lien, security interest, charge, encumbrance <br /> or claim if the same shall arise at any time. The County shall <br /> reimburse the Lender for any expense incurred by it in order to <br /> discharge or remove any such mortgage, pledge, lien, security <br /> interest, charge, encumbrance or claim. <br /> SECTION 7. WARRANTIES AND REPRESENTATIONS OF THE <br /> COUNTY. <br /> The County warrants and represents to the Lender (all such <br /> representations and warranties being continuing) that: <br /> (a) The County is a duly organized and validly existing <br /> political subdivision or agency of the State of North Carolina <br /> within the meaning of Section 103 of the Internal Revenue Code <br /> of 1986, as amended (the "Code") and the related regulations <br /> and rulings and under the laws of the State of North Carolina, <br /> and has all powers necessary to enter into the transactions <br /> contemplated by this Contract and to carry out its obligations <br /> hereunder; <br /> (b) This Contract and all other documents relating <br /> hereto and the performance of the County' s obligations <br /> hereunder and thereunder have been duly and validly <br /> authorized, executed and delivered by the County and approved <br /> under all laws, regulations and procedures applicable to the <br /> County, including, but not limited to, compliance with public <br /> bidding requirements, and, assuming due authorization, <br /> execution and delivery thereof by the other parties thereto, <br /> constitute valid, legal and binding obligations of the County, <br /> enforceable in accordance with their respective terms, subject <br /> to bankruptcy, insolvency and other laws affecting the <br /> enforcement of creditors' rights generally and such principles <br /> of equity as a court having jurisdiction may impose; <br /> (c) No approval or consent is required from any <br /> governmental authority with respect to the entering into or <br /> performance by the County of this Contract, other than the <br /> approval of the Local Government Commission, and the <br /> transactions contemplated hereby or if any such approval is <br /> required it has been duly obtained; <br /> (d) There is no action, suit, proceeding or <br /> investigation at law or in equity before or by any court, <br /> public board or body pending or, to the best of the County' s <br /> 12 <br />