Commitment on Encumbrances Sample Clauses
A Commitment on Encumbrances clause requires one party, typically the seller or borrower, to affirm that the property or asset being transferred is free from any liens, claims, or other legal burdens unless specifically disclosed. In practice, this means the party must ensure there are no outstanding mortgages, easements, or other third-party rights affecting the asset, or must clearly identify any such encumbrances in the agreement. This clause serves to protect the receiving party by ensuring they obtain clear title or ownership, thereby reducing the risk of future disputes or unexpected obligations related to the asset.
Commitment on Encumbrances. If the Borrower should agree to create any specific encumbrance on all or part of its assets or revenues to secure an external debt, it shall at the same time create an encumbrance guaranteeing to the Bank, equally and proportionally, the fulfillment of the pecuniary obligations arising from this Contract. However, the foregoing shall not apply: (a) to encumbrances on goods used as security for payment of the unpaid balance of the purchase price; and (b) to encumbrances created in banking operations to secure payment of debts with maturities of not more than one year. In the event that the Borrower is a member country, the term “assets or revenues” shall mean all types of assets or revenues which belong to the Borrower or any of its dependent agencies which are not autonomous entities with their own separate capital.
Commitment on Encumbrances. The Borrower shall not create any specific encumbrance on all or part of its assets or revenues to secure an external debt without, at the same time, creating an encumbrance guaranteeing to the Bank, equally and proportionally, the fulfillment of the pecuniary obligations arising from this Contract. The foregoing shall not apply:
(a) to encumbrances on goods used as security for payment of the unpaid balance of the purchase price; and (b) to encumbrances created in banking operations to secure payment of debts with maturities of not more than one year. In the event that the Borrower is a member country, the term “assets or revenues” shall mean all types of assets or revenues which belong to the Borrower or any of its dependent agencies which are not autonomous entities with their own separate capital.
Commitment on Encumbrances. If the Counter-Guarantor should agree to create any specific encumbrance on all or part of its assets or revenues to secure an external debt, it shall at the same time create an encumbrance guaranteeing to the Bank, equally and proportionally, the fulfillment of the pecuniary obligations arising from this Contract. However, the foregoing shall not apply: (a) to encumbrances on goods used as security for payment of the unpaid balance of the purchase price; and (b) to encumbrances created in banking operations to secure payment of debts with maturities of not more than one year. In the event that the Counter- Guarantor is a member country, the term “assets or revenues” shall mean all types of assets or revenues which belong to the Counter-Guarantor or any of its dependent agencies which are not autonomous entities with their own separate capital.