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  • TBF Financial, LLC-vs-Anar RehmaniBreach of Contract - Non-Jury document preview
  • TBF Financial, LLC-vs-Anar RehmaniBreach of Contract - Non-Jury document preview
  • TBF Financial, LLC-vs-Anar RehmaniBreach of Contract - Non-Jury document preview
  • TBF Financial, LLC-vs-Anar RehmaniBreach of Contract - Non-Jury document preview
  • TBF Financial, LLC-vs-Anar RehmaniBreach of Contract - Non-Jury document preview
  • TBF Financial, LLC-vs-Anar RehmaniBreach of Contract - Non-Jury document preview
  • TBF Financial, LLC-vs-Anar RehmaniBreach of Contract - Non-Jury document preview
  • TBF Financial, LLC-vs-Anar RehmaniBreach of Contract - Non-Jury document preview
						
                                

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Law Division Motion Section Initial Case Management Dates for CALENDARS (A,B,C,D,E,F,H,R,X,Z) will be heard In Person. All otherCivil ActionInitial Law Division Cover Sheet Case - Case Initiation Management Dates will be heard via Zoom () CCL 0520 For more information and Zoom Meeting IDs go to https.//www.cookcountycourt,org/HOME?Zoom-Links?Agg4906_SelectTab/12 Court Date: No hearingIN THE CIRCUIT information was found.COURT OF COOK COUNTY, ILLINOIS FILED COUNTY DEPARTMENT, LAW DIVISION 10/31/2023 2:32 PM IRIS Y. MARTINEZ TBF Financial, LLC. CIRCUIT CLERK ___________________________________________________________ COOK COUNTY, IL FILED DATE: 10/31/2023 2:32 PM 2023L011119 2023L011119 Calendar, Q v. 25018124 Anar A Rehmani ___________________________________________________________ No. ______________________________ CIVIL ACTION COVER SHEET - CASE INITIATION A Civil Action Cover Sheet - Case Initiation shall be filed with the complaint in all civil actions. The information contained herein is for administrative purposes only and cannot be introduced into evidence. Please check the box in front of the appropriate case type which best characterizes your action. Only one (1) case type may be checked with this cover sheet. Jury Demand‰Yes‰No PERSONAL INJURY/WRONGFUL DEATH CASE TYPES: (FILE STAMP) ‰ 027 Motor Vehicle COMMERCIAL LITIGATION ‰ 040 Medical Malpractice CASE TYPES: ‰ 047 Asbestos ‰ 002 Breach of Contract ‰ 048 Dram Shop ‰ 070 Professional Malpractice ‰ 049 Product Liability (other than legal or medical) ‰ 051 Construction Injuries ‰ 071 Fraud (other than legal or medical) (including Structural Work Act, Road ‰ 072 Consumer Fraud Construction Injuries Act and negligence) ‰ 073 Breach of Warranty ‰ 052 Railroad/FELA ‰ 074 Statutory Action ‰ 053 Pediatric Lead Exposure (Please specify below.**) ‰ 061 Other Personal Injury/Wrongful Death ‰ 075 Other Commercial Litigation ‰ 063 Intentional Tort (Please specify below.**) ‰ 064 Miscellaneous Statutory Action ‰ 076 Retaliatory Discharge (Please Specify Below**) ‰ 065 Premises Liability OTHER ACTIONS ‰ 078 Fen-phen/Redux Litigation ‰ 199 Silicone Implant CASE TYPES: ‰ 062 Property Damage TAX & MISCELLANEOUS REMEDIES ‰ 066 Legal Malpractice CASE TYPES: ‰ 077 Libel/Slander ‰ 007 Confessions of Judgment ‰ 079 Petition for Qualified Orders ‰ 008 Replevin ‰ 084 Petition to Issue Subpoena ‰ 009 Tax ‰ 100 Petition for Discovery ‰ 015 Condemnation ** ___________________________________________________ ‰ 017 Detinue _____________________________________________________ ‰ 029 Unemployment Compensation ‰ 031 Foreign Transcript Primary Email: _________________________________________ ‰ 036 Administrative Review Action ‰ 085 Petition to Register Foreign Judgment Secondary Email: _______________________________________ ‰ 099 All Other Extraordinary Remedies By: _______________________________________________ Tertiary Email: _________________________________________ (Attorney) (Pro Se) Pro Se Only: ‰ I have read and agree to the terms of the Clerk’s O ice Electronic Notice Policy and choose to opt in to electronic notice form the Clerk’s OGGJDF for this case at this email address: ______________________________________________________________ *3*4:."35*/&;, CLERK OF THE CIRCUIT COURT OF COOK COUNTY, ILLINOIS Page 1 of 1 IN THE CIRCUIT COURT OF COOK COUNTY, ILLINOIS COUNTY DEPARTMENT, LAW DIVISION TBF FINANCIAL, LLC, an Illinois limited ) liability company, ) FILED DATE: 10/31/2023 2:32 PM 2023L011119 Plaintiff, ) No.: ) vs. ) Amount Claimed: $108,372.60 ) ANAR A. REHMANI, ) Defendant. ) ) VERIFIED COMPLAINT NOW COMES Plaintiff, TBF FINANCIAL, LLC, an Illinois limited liability company, by and through its attorney, the Law Office of Jason S. Harris, LLC, and complains of Defendan t, ANAR A. REHMANI, as follows: 1. Plaintiff, TBF FINANCIAL, LLC, is an Illinois limited liability company duly organized and qualified to transact business in the State of Illinois, with its principal place of business located in Lake County, Illinois. 2. ANAR A. REHMANI is an individual who resides in Cook County, Illinois. 3. On or about January 9, 2020, Midwest Chicago Trading, Inc. (“Merchant”) entered into that certain “Merchant Agreement” with Funding Metrics, LLC d/b/a Lendini (“Lendini”), said Merchant Agreement being subsequently assigned for servicing to Pier Special Opportunities Fund LP, whereby, in consideration of the “Purchase Price,” Merchant sold, assigned and transferred the “Specified Percentage” of all of Merchant’s future accounts, contract rights and other entitlements from or related to the payment of monies from Merchant’s customers and/or other third party payors (collectively, the “Receipts”) until Lendini received the Purchased Amount. Merchant sold a portion of a future revenue stream to Lendini at a discount. Merchant did not borrow money from Lendini. A copy of said Merchant Agreement, Plaintiff’s Accounting Statement and Affidavit Regarding Breach of Merchant Agreement are attached hereto and hereby made a part hereof as Exhibit A. 4. Plaintiff is the successor in interest of said Merchant Agreement having purchased said Merchant Agreement in the regular course of business and in good faith and for valuable consideration. Copies of the chain of title of said purchase are attached hereto and hereby made a part hereof as Exhibit B. 5. Pursuant to the Merchant Agreement, Midwest Chicago Trading, Inc. agreed to make all required remittances of Receipts or payments when due. 6. Midwest Chicago Trading, Inc. breached the Merchant Agreement as of February 24, 2020 by stop payment and/or failure to provide requested documents, as required pursuant to the terms thereof, and, therefore, there remains due and owing to Plaintiff the sum of $108,372.60, FILED DATE: 10/31/2023 2:32 PM 2023L011119 including late payment charges accrued thereon, if any. 7. Pursuant to the “Merchant Security Agreement and Guaranty” included with the Merchant Agreement, ANAR A. REHMANI personally guaranteed the good faith, truthfulness and performance of all representations, warranties and covenants made by Merchant in said Merchant Agreement. 8. Although requested, ANAR A. REHMANI has refused and still refuses to timely pay to Plaintiff any part of the said $108,372.60. 9. Plaintiff has duly performed all terms and conditions of the Merchant Agreement on its part to be performed. 10. ANAR A. REHMANI has been guilty of unreasonable and vexatious delay in the payment of said sum. Pursuant to 815 ILCS 205/2, Plaintiff claims pre -judgment interest at the statutory rate of 5% from February 24, 2020, as it accrues, until Judgment is entered. 11. The Merchant Agreement allows Plaintiff to seek and recover costs and reasonable attorneys’ fees in the event litigation arises out of the breach of the Merchant Agreement. WHEREFORE, Plaintiff prays this Honorable Court will enter judgment against Defendan t in the amount of $108,372.60, plus pre-judgment interest at 5% per annum from the date of default, and reasonable attorney’s fees and court costs as allowed by the Contract. Respectfully Submitted, TBF Financial, LLC, Plaintiff herein By: Jason S. Harris, Attorney for Plaintiff Jason S. Harris, LLC Attorney for Plaintiff (#47462) 300 Saunders Road, Suite 100 Riverwoods, IL 60015 Phone: (847) 940-1800 Fax: (312) 488-4202 Email: jharris@jshlawoffice.com 2 FILED DATE: 10/31/2023 2:32 PM 2023L011119 FILED DATE: 10/31/2023 2:32 PM 2023L011119 FILED DATE: 10/31/2023 2:32 PM 2023L011119     (;+,%,7$ Advance Effective Date Returned Amount Balance 1/9/2020 $118,150.00 A-0005308691 1/14/2020 No $895.08 $117,254.92 A-0005308691 1/15/2020 No $895.08 $116,359.84 FILED DATE: 10/31/2023 2:32 PM 2023L011119 A-0005308691 1/16/2020 No $895.08 $115,464.76 A-0005308691 1/17/2020 No $895.08 $114,569.68 A-0005308691 1/20/2020 No $895.08 $113,674.60 A-0005308691 1/20/2020 No $895.08 $112,779.52 A-0005308691 1/22/2020 No $895.08 $111,884.44 A-0005308691 1/23/2020 No $895.08 $110,989.36 A-0005308691 1/24/2020 No $895.08 $110,094.28 A-0005308691 1/27/2020 No $895.08 $109,199.20 A-0005308691 1/28/2020 No $895.08 $108,304.12 A-0005308691 1/29/2020 No $895.08 $107,409.04 A-0005308691 1/30/2020 No $895.08 $106,513.96 A-0005308691 1/31/2020 No $895.08 $105,618.88 A-0005308691 2/3/2020 No $895.08 $104,723.80 A-0005308691 2/4/2020 No $895.08 $103,828.72 A-0005308691 2/5/2020 No $895.08 $102,933.64 A-0005308691 2/6/2020 No $895.08 $102,038.56 A-0005308691 2/7/2020 No $895.08 $101,143.48 A-0005308691 2/10/2020 No $895.08 $100,248.40 A-0005308691 2/11/2020 No $895.08 $99,353.32 A-0005308691 2/12/2020 No $895.08 $98,458.24 A-0005308691 2/13/2020 No $895.08 $97,563.16 A-0005308691 2/14/2020 No $895.08 $96,668.08 A-0005308691 2/17/2020 No $895.08 $95,773.00 A-0005308691 2/17/2020 No $895.08 $94,877.92 A-0005308691 2/19/2020 No $895.08 $93,982.84 A-0005308691 2/20/2020 No $895.08 $93,087.76 A-0005308691 2/21/2020 No $895.08 $92,192.68 A-0005308691 2/24/2020 No $895.08 $91,297.60 A-0005308691 2/25/2020 Yes $0.00 $91,297.60 A-0005308691 2/26/2020 Yes $0.00 $91,297.60 A-0005308691 2/27/2020 Yes $0.00 $91,297.60 Principal $91,297.60 Default Fee $17,000.00 NSF Fees $75.00 TOTAL $108,372.60 DocuSign Envelope ID: 7A013549-C93B-4797-9B54-98A80CDA8D7E 3220 Tillman Drive, Suite 200, Bensalem, PA 19020 Phone: 855.212.6614 Fax: 855.361.7594 AGR-00226661 MERCHANT AGREEMENT This Merchant Agreement (“Agreement”) is made as of 1/9/2020 between Funding Metrics, LLC dba Lendini (“Lendini”) and the Merchant listed below (the “Merchant”). FILED DATE: 10/31/2023 2:32 PM 2023L011119 MERCHANT INFORMATION Legal Name of Merchant: MIDWEST CHICAGO TRADING, INC. d/b/a if applicable: Account Name: Midwest Chicago Trading Inc. Business Address: 6726 N Clark St City: Chicago State: IL Zip: 60626 Mailing Address (if different): 6726 N Clark St City: Chicago State: IL Zip: 60626 Business Phone: (773) 764-7860 Business E-Mail Address: tri786@hotmail.com State of Inception: Illinois Date of Inception: EIN/Tax # XXXXX5021 GUARANTOR #1 INFORMATION Name of Owner #1: Anar Rehmani % Owned of Business 100.00 Date of Birth: SSN: Phone: Email Address: Residential Address: City: State: Zip: GUARANTOR #2 INFORMATION Name of Owner #2: % Owned of Business Date of Birth: SSN: Phone: Email Address: Residential Address: City: State: Zip: GUARANTOR #3 INFORMATION Name of Owner #3: % Owned of Business Date of Birth: SSN: Phone: Email Address: Residential Address: City: State: Zip I acknowledge and agree to the terms and conditions herein: Merchant Initials: X X X Guarantor(s) Initials: X X X 1 DocuSign Envelope ID: 7A013549-C93B-4797-9B54-98A80CDA8D7E PURCHASE AND SALE OF FUTURE RECEIVABLES THIS IS NOT A LOAN ANY MISREPRESENTATION MADE BY OWNER AND/OR GUARANTOR IN CONNECTION WITH THIS AGREEMENT MAY CONSTITUTE A SEPARATE CAUSE OF ACTION FOR FRAUD, INTENTIONAL MISREPRESENTATION AND/OR FILED DATE: 10/31/2023 2:32 PM 2023L011119 UNJUST ENRICHMENT IN WHICH EVENT LENDINI WILL BE ENTITLED TO THE RECOVERY OF NOT ONLY ITS LOSSES BUT ALSO, ALL OF ITS COSTS, EXPENSES AND REASONABLE LEGAL FEES. Merchant hereby sells, assigns and transfers to Lendini (making Lendini the absolute owner), without recourse, in consideration of the “Purchase Price” specified below, the “Specified Percentage” of the proceeds of each future sale made by Merchant (collectively "Future Receipts") until Lendini has received the Purchased Amount. “Future Receipts” includes all payments made by cash, check, ACH or other electronic transfer, credit card, debit card, bank card, charge card (each such card shall be referred to herein as a “Payment Card”) or other form of monetary payment in the ordinary course of Merchant’s business. As payment for the Purchased Amount, Merchant will deliver to Lendini the Purchase Price minus the Origination Fee, as set forth below. BASED UPON MERCHANT’S CALCULATIONS AND EXPERIENCE IN OPERATING ITS BUSINESS, MERCHANT IS CONFIDENT THAT THE PURCHASE PRICE PAID BY LENDINI IN EXCHANGE FOR THE PURCHASED AMOUNT OF FUTURE RECEIPTS WILL BE USED IN A MANNER THAT WILL BENEFIT MERCHANT’S CURRENT AND FUTURE BUSINESS OPERATIONS. MERCHANT ACKNOWLEDGES THAT THIS TRANSACTION IS IN THE ORDINARY COURSE OF ITS BUSINESS. Lendini will debit the specific daily increment each business day from only one depositing bank account, which account must be Acceptable to and pre-approved by Lendini, (the “Account”) into which Merchant and Merchant’s customers shall remit the Receipts from each Transaction, until such time as Lendini receives payment in full of the Purchase d Amount. Merchant hereby irrevocably authorizes Lendini to ACH Debit the specified remittances from the Merchant’s bank account on a daily basis and will provide Lendini with all required access codes, and monthly bank statements. Merchant underst ands that it is responsible for ensuring that the specified percentage to be debited by Lendini remains in the account and will be held responsible for any fees incurred by Lendini resulting from a rejected ACH attempt or an event of default. (See Ad dendum attached hereto and incorporated herein) Lendini is not responsible for any overdrafts or rejected transactions that may result from Lendini ACH debiting the specified amounts under the terms of this Agreement. Lendini will debit the specific daily amount each business day. Original Purchase Price: $ 100000.00 Balance Owed to Date: $ 14766.28 Total Purchase Price: $ 85000.00 Total Purchased Amount: $ 118150.00 In Daily Increments of: $ 895.08 Purchase Percentage: % 18.37% Net to Merch: $ 70233.72 Origination Fee. An Origination Fee totaling $ 1095.00 shall be deducted from the Purchase Price prior to funding. 7/24/2019 This fee and the balance owed to Lendini from the Purchase Agreement dated _____________________________, in 85000.00 14766.28 will be deducted from the purchase price of $ ________________, prior to funding. the amount of $___________ 14766.28 is applied to the balance owed to Lendini from the Purchase Agreement The deducted amount of $ __________ dated_____________________________ and serves to complete that particular Purchase Agreement. You will receive 7/24/2019 69138.72 a Net Purchase Price in the amount of $________________ at funding. Lendini’s Acknowledgement. Merchant is selling a portion of a future revenue stream to Lendini at a discount, not borrowing money from Lendini. There is no interest rate or payment schedule and no time period during which the Purchased Amount must be collected by Lendini. Merchant going bankrupt or going out of business, in and of itself, does not constitute a breach of this Agreement. Lendini is entering into this Agreement knowing the risks that Merchant’s business may slow down or fail, and Lendini assumes these risks based on Merchant’s representations, warranties and covenants in this Agreement, which are designed to give Lendini a reasonable and fair opportunity to receive the benefit of its bargain. I acknowledge and agree to the terms and conditions herein: Merchant Initials: X X X Guarantor(s) Initials: X X X 2 DocuSign Envelope ID: 7A013549-C93B-4797-9B54-98A80CDA8D7E Merchant’s Right to Request a Reconciliation. The Daily Payment amount is intended to represent the Purchase Percentage of Merchant’s Future Receipts. Merchant may request that Lendini reconcile Merchant’s actual receipts by either crediting or debiting the difference back to or from the Account so that the amount Lendini debited in the most recent calendar month equaled the Purchase Percentage of Future Receipts that Merchant collected in that calendar month. Any reconciliation request must be: (1) in writing; (2) include a copy of the Merchant’s financial statements for all the business related financial accounts for the calendar month at issue; and (3) be sent to Lendini at 3220 Tillman Drive, Suite 200, Bensalem, PA 19020 or emailed to FILED DATE: 10/31/2023 2:32 PM 2023L011119 collections@fundingmetrics.com within 30 days after the last day of the calendar month at issue. It is solely the Merchant’s responsibility to send complete financial statements. Failure to send a written reconciliation request within 30 days after the last day of the calendar month at issue forfeits that month’s reconciliation. Merchant’s Right to Request a Reduction based on Loss of Revenue. In the event of a temporary decrease in revenue, Merchant may request a temporary reduction in the daily payment. A reduction request must be: (1) in writing; (2) include a copy of the Merchant’s financial statements for all the business related financial accounts for the last three months and month to date statements from each business related financial account; (3) additional requested supporting documentation; and (4) be sent to Lendini at 3220 Tillman Drive, Suite 200, Bensalem, PA 19020 or emailed to collections@fundingmetrics.com. Merchant’s Right to Request a Reduction for affordability, not based on a Loss of Revenue. A reduction request must be: (1) in writing; (2) include a copy of the Merchant’s financial statements for all the business-related financial accounts for the last three months and month to date statements from each business-related financial account; (3) additional requested supporting documentation; and (4) be sent to Lendini at 3220 Tillman Drive, Suite 200, Bensalem, PA 19020 or emailed to collections@fundingmetrics.com. Lendini retains the discretion to determine whether or not a reduction is warranted. An administrative fee may apply, at the discretion of Lendini. All fees applicable under this Agreement are listed in the attached Fee Addendum. Lendini’s payment of the Purchase Price shall be deemed Lendini’s acceptance and performance of this Agreement, notwithstanding Lendini not executing this Agreement. To the extent set forth herein, each of the parties whose signature appears below is obligated upon his, her or its execution of the Agreement to all terms of the Agreement, including the Additional Terms set forth herein. Each Merchant and Owner represents that he or she is duly authorized to sign this Agreement on behalf of the for Merchant, and that the information provided herein and in all of Lendini's documents, forms and recorded interviews is true, accurate and complete in all respects. If any suc h information is false or misleading, Merchant shall be deemed in material breach of all agreements between Merchant and Lendini and Lendini shall be e ntitled to all remedies available under law. Lendini may request monthly statements reflecting the delivery of the Purchase Percentage of Receivables from Merchant via a processor of Merchant’s Receipts and/or Operator (a “Processor”) to Lendini. An investigative or consumer report may be made in connection with the Agreement. Merchant and each of the Guarantors authorizes Lendini, its agents, assignees, and representatives and any credit reporting agency engaged by Lendini, to (i) investigate any references given or any other statements or data obtained from or about Merchant or any of its Guarantors for the purpose of this Agreement, and (ii) pull a credit report at any time now or for so long as Merchant and/or Guarantors continue to have any obligation owed to Lendini as a consequence of this Agreement or for Lendini's ability to determine Merchant’s eligibility to enter into any future agreement with Lendini. LIMITED PERFORMANCE GUARANTEE OF MERCHANT: IN CONSIDERATION OF LENDINI ENTERING INTO THIS AGREEMENT, AND TO INDUCE LENDINI TO ENTER INTO THIS AGREEMENT, THE UNDERSIGNED PRINCIPAL(S) OF MERCHANT (“GUARANTOR(S)”) HEREBY GUARANTEE TO LENDINI THAT: (I) ALL INFORMATION PROVIDED BY MERCHANT TO LENDINI IN CONNECTION WITH THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT IS TRUE, CORRECT AND COMPLETE; (II) THE PRINCIPAL(S) SHALL NOT UNDERTAKE ANY ACTION TO DIVERT BUSINESS FROM THE MERCHANT TO ANY OTHER ENTITY OR OTHERWISE TAKE ACTION LIKELY TO DEPRIVE LENDINI OF THE VALUE OF THE ASSETS PURCHASED; AND (III) SHALL NOT DIRECT, OR THROUGH OMISSION PERMIT, MERCHANT TO BREACH THIS AGREEMENT, OR DO ANY OF THE ACTS PROHIBITED BY THIS AGREEMENT. This guarantee shall be the continuing, irrevocable, unconditional and joint and several obligations of the Guarantor(s), and the Guarantor(s) hereby waive demand of payment, notice of presentment, and any and all r equirements of notice, defenses, offsets and counterclaims and any other act or omission of Lendini which changes the scope of the Guarantors’ risk, and Guarantor(s) further agree that Lendini may proceed I acknowledge and agree to the terms and conditions herein: Merchant Initials: X X X Guarantor(s) Initials: X X X 3 DocuSign Envelope ID: 7A013549-C93B-4797-9B54-98A80CDA8D7E directly against the Guarantors without first proceeding against Merchant. Each Guarantor further guarantees the performance obligations hereunder and agrees to pay all Indemnified Amounts (as defined in Section 5.6 of this Agreement). By signing below Guarantors agree to this Guarantee and each representation, warranty and covenant set forth in Sections 2 and 3.1 of this Agreement, which representations, warranties and covenants shall survive the termination of this Agreement. TERMS & CONDITIONS OF PURCHASE AGREEMENT FILED DATE: 10/31/2023 2:32 PM 2023L011119 1. STATEMENTS AND REPORTS. Section 1.1 Credit Reports. Merchant and Guarantor(s) acknowledge and agree that in connection with the execution of this Agreement an investigative and/or consumer report may be made. Accordingly, the Merchant and each Guarantor authorizes Lendini and its agents, assignees and representatives and any credit reporting agency employed by the Lendini to investigate any references given or any other statements of data obtained from or about the Merchant, and any Guarantor or any of Merchant’s other principals for the purpose of this Agreement and to order, receive and review credit reports at any time now or in the future on the Merchant, Guarantor(s) and principals. Section 1.2 Transactional History. Merchant authorizes all of its banks and brokers to provide Lendini with Merchant’s banking, brokerage and/ or processing history to determine qualification and/or continuation in this program. Section 1.3 Indemnification. Merchant and Guarantor(s) jointly and severally indemnify and hold harmless Processor, its officers’ directors, and shareholders, against all losses, damages, claims, liabilities, and expenses (including reasonable attorney’s fees) incurred by Processor resulting from (a) claims asserted by Lendini for monies owed to Lendini from Merchant and (b) actions taken by Processor in reliance upon any fraudulent, misleading or deceptive information or instruction provided by Lendini. 2. REPRESENTATIONS, WARRANTIES AND COVENANTS. Merchant and the Guarantor(s) hereby represent, warrant and covenant that as of this date and during the term of this Agreement: Section 2.1 Merchant’s Conduct. Merchant shall: (i) not change the account name, password or other access information relating to accounts from which ACH or electronic check payments are to be made without giving Lendini at least ten (10) business days prior written notice of such change; (ii) not sell, dispose, convey or otherwise transfer its b usiness or all or any substantial portion of its assets, in each case, without the express prior written consent of Lendini and the purchaser or assignee’s assumption of all of the Merchant’ s obligations under this Agreement pursuant to the documentation reasonably satisfactory to Lendini; (iii) not sell, dispose, convey or otherwise transfer any of its future accounts receivable; (iv) not grant any security interest or lien upon its accounts receivable or other assets; (v) not incur any debt on the business without the express prior written consent of Lendini; and (vi) not commit fraud. Section 2.2 Financial Condition/Business Information. Merchant’s and Guarantor’s bank and financial statements , from all accounts related to the business, copies of which have been furnished to Lendini, and future statements that will be furnished hereafter at the request of Lendini, fairly represent the financial condition of Merchant and Guarantor at such dates, and since those dates there has been no material adverse changes, financial or otherwise in the condition, operation, ownership of Merchant. Merchant and Guarantors have a continuing, affirmative obligation to advise Lendini of any material adverse change in their financial condition, operation and ownership . Lendini may request statements, including, if applicable, all information necessary to permit Lendini and its agents to determine the amount to be paid to Merchant under Lendini's “ACH Program” and initiate such electronic check or ACH payments, at any time during the performance of this Agreement and the Merchant and Guarantors shall provide them to Lendini within five (5) business days. Merchant’s and Guarantor’s failure to do so is a material breach of this Agreement. Section 2.3 Reliance on Information. The Merchant acknowledges that the information, financial and other, provided by the Merchant has been relied upon by Lendini in connection with its decision to purchase the future receivables of the Merchant. Section 2.4 Governmental Approvals. The Merchant possesses and is in compliance with all permits, licenses, approvals, consents and other authorizations necessary to conduct its business. The Merchant is in compliance with any and all applicable federal, state and local laws and regulations. The Merchant possesses all requisite permits, authorizations and licenses to own, operate and lease its properties and to conduct the business in which it is presently engaged. I ackno