Lien Against Applicable Resort Clause Samples
The 'Lien Against Applicable Resort' clause establishes the right of a party, typically a lender or service provider, to place a legal claim or hold (lien) on a resort property as security for the payment of debts or obligations. In practice, this means that if the resort owner fails to fulfill payment terms or contractual duties, the party holding the lien can seek to recover owed amounts by asserting a claim against the resort property, potentially leading to foreclosure or sale if the debt remains unpaid. This clause primarily functions to protect the interests of creditors by providing a tangible asset as collateral, thereby reducing the risk of non-payment and ensuring a mechanism for debt recovery.
Lien Against Applicable Resort. Except for the Permitted Liens and Encumbrances or as otherwise specifically provided herein to the contrary, if Borrower or an Applicable Underlying Borrower grants any mortgage, Lien, or other encumbrance upon all or any portion of an Applicable Resort or any Applicable Underlying Loan Collateral other than in favor of Lender in connection with the Loan, provided that such mortgage, Lien, or other encumbrance has a material adverse effect upon the value of such Applicable Underlying Loan Collateral or all or any portion of the Collateral, unless approved by Lender in writing, in its sole and absolute discretion.