Borrower Single Asset Status Sample Clauses
The Borrower Single Asset Status clause defines the requirement that the borrower owns and operates only a single, specified asset, typically a property, within the borrowing entity. In practice, this means the borrower entity is restricted from holding other assets or engaging in unrelated business activities, ensuring that the lender’s collateral is not diluted or complicated by other interests. This clause is primarily used to isolate risk and provide clarity for lenders, making it easier to monitor and enforce their security interest in the event of default.
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Borrower Single Asset Status. Borrower:
(1) does not own any real property, personal property or assets other than the Mortgaged Property;
(2) does not own, operate or participate in any business other than the management and operation of the Mortgaged Property;
(3) has no material financial obligation under any indenture, mortgage, deed of trust, deed to secure debt, loan agreement or other agreement or instrument to which Borrower is a party or by which Borrower or the Mortgaged Property is otherwise bound, other than unsecured obligations incurred in the ordinary course of the operation of the Mortgaged Property and obligations under the Loan Documents and obligations secured by the Mortgaged Property to the extent permitted by the Loan Documents;
(4) has accurately maintained its financial statements, accounting records and other partnership, real estate investment trust, limited liability company or corporate documents, as the case may be, separate from those of any other Person;
(5) has not commingled its assets or funds with those of any other Person;
(6) has been adequately capitalized in light of its contemplated business operations;
(7) has not assumed, guaranteed or become obligated for the liabilities of any other Person (except in connection with the Mortgage Loan or the endorsement of negotiable instruments in the ordinary course of business) or held out its credit as being available to satisfy the obligations of any other Person; and
(8) has not entered into, and was not a party to, any transaction with any affiliate of any Person, except in the ordinary course of business and on terms which are no less favorable to any such Person than would be obtained in a comparable arm’s length transaction with an unrelated third party.
Borrower Single Asset Status. Until the Indebtedness is fully paid, Borrower:
(1) shall not acquire any real property, personal property or assets other than the Mortgaged Property;
(2) shall not own, operate or participate in any business other than the management and operation of the Mortgaged Property;
(3) shall not commingle its assets or funds with those of any other Person unless such assets or funds can be segregated and identified;
(4) shall accurately maintain its financial statements, accounting records and other partnership, real estate investment trust, limited liability company or corporate documents, as the case may be, separate from those of any other Person;
(5) shall not assume, guaranty or become obligated for, the liabilities of any other Person (except in connection with the Mortgage Loan or the endorsement of negotiable instruments in the ordinary course of business) or hold out its credit as being available to satisfy the obligations of any other Person; or
(6) shall not enter into, or become a party to, any transaction with any affiliate of any Person, except in the ordinary course of business and on terms which are no less favorable to any such Person than would be obtained in a comparable arm’s length transaction with an unrelated third party.
Borrower Single Asset Status. Until the Indebtedness is fully paid, Borrower:
Borrower Single Asset Status. Until the Indebtedness is fully paid, Borrower:
(1) shall not acquire any real property, personal property or assets other than the Mortgaged Property;
(2) shall not own, operate or participate in any business other than the management and operation of the Mortgaged Property;
(3) shall not commingle its assets or funds with those of any other Person unless such assets or funds can be segregated and identified;
(4) shall accurately maintain its financial statements, accounting records and other partnership, real estate investment trust, limited liability company or corporate documents, as the case may be, separate from those of any other Person (except that Borrower may file consolidated tax returns that accurately describe the assets, income and expenses, and ownership of each entity covered by such consolidated tax returns);
(5) shall not assume, guaranty or become obligated for, the liabilities of any other Person (except in connection with the Mortgage Loan or the endorsement of negotiable instruments in the ordinary course of business) or hold out its credit as being available to satisfy the obligations of any other Person; or
(6) shall not enter into, or become a party to, any transaction with any affiliate of any Person, except in the ordinary course of business and on terms which are no less favorable to any such Person than would be obtained in a comparable arm’s length transaction with an unrelated third party.
Borrower Single Asset Status. Borrower:
(1) does not own any real property, personal property or assets other than the Mortgaged Property;
(2) does not own, operate or participate in any business other than the management and operation of the Mortgaged Property;
(3) has no material financial obligation under or secured by any indenture, mortgage, deed of trust, deed to secure debt, loan agreement or other agreement or instrument to which Borrower is a party or by which Borrower or the Mortgaged Property is otherwise bound, other than:
(A) unsecured obligations incurred in the ordinary course of the operation of the Mortgaged Property;
(B) if the Security Instrument grants a lien on a leasehold estate, Borrower’s obligations as lessee under the ground lease creating such leasehold estate; and
(C) obligations under the Loan Documents and obligations secured by the Mortgaged Property to the extent permitted by the Loan Documents;
(4) has accurately maintained its financial statements, accounting records and other partnership, real estate investment trust, limited liability company or corporate documents, as the case may be, separate from those of any other Person (unless Borrower’s assets have been included in a consolidated financial statement of a Borrower Affiliate in accordance with generally accepted accounting principles);
(5) has not commingled its assets or funds with those of any other Person unless such assets or funds can be segregated and identified in the ordinary course of business;
(6) has been adequately capitalized in light of its contemplated business operations;
(7) has not assumed, guaranteed or become obligated for the liabilities of any other Person (except in connection with the Mortgage Loan or other mortgage loans that have been paid in full or collaterally assigned to Lender, including in connection with any Consolidation, Extension and Modification Agreement or similar instrument) or held out its credit as being available to satisfy the obligations of any other Person; and
(8) has not entered into, and is not a party to, any transaction with any Borrower Affiliate, except in the ordinary course of business and on terms which are no more favorable to any such Borrower Affiliate than would be obtained in a comparable arm’s length transaction with an unrelated third party.