Common use of Contesting Liens Clause in Contracts

Contesting Liens. (i) Borrower shall promptly discharge or cause to be discharged any mechanics’ or materialmen’s liens or claims of lien filed or otherwise asserted against the Property, the Improvements, or any funds due the General Contractor or any contractor and any proceedings for the enforcement thereof; provided, however, that Borrower shall have the right to contest in good faith and with reasonable diligence the validity of any such liens or claims upon furnishing to the Title Company such security or indemnity as the latter may require to induce it to issue its Title Policy or an interim endorsement thereto insuring against all such claims or liens and, provided further, that ▇▇▇▇▇▇▇ will not be required to make any further disbursements of the Loan until all such mechanics’ or materialmens’ liens or claims of lien shown on the title insurance commitment or any interim endorsement have been so insured against by the Title Company to Administrative Agent’s satisfaction. BN 72497947v7 (ii) If (1) Borrower fails either to promptly discharge or contest liens or claims of lien and provide the security or indemnity in the manner provided in this Agreement or (2) after having complied with the provisions of this Agreement there is an adverse conclusion to any such contest and Borrower does not cause any final judgment or decree to be immediately satisfied and the lien to be discharged, then Administrative Agent may, but shall not be required to, procure the release and discharge of any such lien and any judgment or decree thereon, or so same is not a lien against the Property, and in furtherance thereof may, in its commercially reasonable discretion, effect any settlement or compromise or furnish any security or indemnity as may be required by the Title Company. All amounts expended by Administrative Agent in connection with the provisions of this subsection shall be deemed to constitute a disbursement of the Loan. In settling, compromising or arranging for the discharge of any liens under this subsection, Administrative Agent shall not be required to establish or confirm the validity or amount of the lien.

Contesting Liens. (ia) Borrower shall promptly discharge or cause to be discharged any mechanics’ or materialmen’s liens or claims of lien filed or otherwise asserted against the PropertyPremises, the Improvements, the Project or any funds due the General Contractor or any contractor Construction Contractor and any proceedings for the enforcement thereof; provided, however, that Borrower shall have the right to contest in good faith and with reasonable diligence the validity of any such liens or claims upon furnishing to the Title Company such security or indemnity as the latter may require to induce it to issue its Title Insurance Policy or an interim endorsement thereto insuring against all such claims or liens and, provided further, that ▇▇▇▇▇▇▇ Lender will not be required to make any further disbursements of the Loan until all such mechanics’ or materialmens’ materialmen’s liens or claims of lien shown on the title insurance commitment or any interim endorsement have been so insured against by the Title Company to Administrative AgentLender’s satisfaction. BN 72497947v7. (iib) If (1i) Borrower fails either to promptly discharge or contest liens or claims of lien and provide the security or indemnity in the manner provided in this Agreement Section 6.10(a) or (2ii) after having complied with the provisions of this Agreement Section 6.10(a) there is an adverse conclusion to any such contest and Borrower does not cause any final judgment or decree to be immediately satisfied and the lien to be discharged, then Administrative Agent Lender may, but shall not be required to, procure the release and discharge of any such lien and any judgment or decree thereon, or so same is not a lien against the Property, and in furtherance thereof may, in its commercially reasonable sole discretion, effect any settlement or compromise or furnish any security or indemnity as may be required by the Title Company. All amounts expended by Administrative Agent Lender in connection with the provisions of this subsection Section 6.10(b) shall be deemed to constitute a disbursement of the Loan. In settling, compromising or arranging for the discharge of any liens under this subsectionSection 6.10(b), Administrative Agent Lender shall not be required to establish or confirm the validity or amount of the lien.