Encumbering Sample Clauses
The Encumbering clause defines restrictions on a party’s ability to place liens, security interests, or other claims on certain assets or property covered by the agreement. In practice, this means that a party cannot use the specified assets as collateral for loans or otherwise burden them with third-party interests without prior consent. This clause is essential for protecting the other party’s interests by ensuring that the assets remain free from unexpected claims or legal complications, thereby preserving their value and availability throughout the term of the agreement.
Encumbering. Except as provided in this Section to the contrary, Redeveloper shall not, without Agency's prior written consent, voluntarily assign or encumber Redeveloper's interest in this Lease or in the Leasehold Parcels, or sublease substantially all or any part of the Leasehold Parcels, or allow any other person or entity (except Redeveloper's authorized representatives) to occupy or use all or any part of the Property. For the purposes hereof, an "encumbrance" shall mean mortgage, deed of trust, land sale contract, lease or other financing device. Any attempted assignment, encumbrance, or sublease shall be voidable by Agency and, at Agency's election, shall constitute a default hereunder. No consent to any assignment, encumbrance, or sublease shall constitute a further waiver of the provisions of this Section. Any sale or transfer of the Convention Center Parcel other than as permitted hereunder shall void the Agency's obligation to repurchase the Convention Center Parcel upon termination of the Lease but not its right to do so at its option.
Encumbering negatively all the assets used as guarantee of this loan;