Common use of Mechanics' and Other Liens Clause in Contracts

Mechanics' and Other Liens. Except for Permitted Encumbrances, the Company shall not suffer or permit any mechanics' or other Liens to be filed or to exist against the Collateral or any payments paid or payable under the Loan Documents, by reason of work, labor, services or materials supplied or claimed to have been supplied to, for or in connection with the Collateral or to the Company, the Director or anyone holding the Collateral or any part thereof through or under the Company. If any such Lien shall at any time be filed, the Company shall, within thirty (30) days after notice of the filing thereof but subject to the right to contest as herein set forth, cause the same to be discharged of record by payment, deposit, bond, order of a court of competent jurisdiction or otherwise. Notwithstanding the foregoing, the Company shall have the right, at the Company's expense and after written notice to the Director, by appropriate proceeding timely instituted and diligently prosecuted, to contest in good faith the validity or the amount of any such Lien. If, however, the Director shall notify the Company that, in the opinion of Independent Counsel, by nonpayment of any such items the lien, pledge or security interest created by this Security Agreement as to any part of the Collateral will be materially affected or the Collateral or any part thereof will be subject to imminent loss or forfeiture, the Company shall promptly cause such Lien to be discharged of record, as herein provided. Should the Company fail to cause such Lien to be discharged or to contest the validity or amount thereof, within the period aforesaid, then, the Director may, but shall be under no obligation to, discharge the same either by paying the claim or by procuring the discharge of such Lien by making a deposit or obtaining a bond, which advances if any shall be paid by the Company to the Director on demand, together with interest thereon at the Interest Rate for Advances from the date thereof, in addition to all other payments to be made by the Company pursuant to the Loan Documents and shall be subject to and secured by this Security Agreement as additional indebtedness in accordance with the provisions of Section 2.8 hereof.

Appears in 3 contracts

Samples: Security Agreement (Guitammer Co), Security Agreement (Guitammer Co), Security Agreement (Guitammer Co)

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Mechanics' and Other Liens. Except for Permitted EncumbrancesTenant shall have no authority, express or implied, to create or place any lien or encumbrance of any kind or nature whatsoever upon, or in any manner to bind, the Company interest of Landlord in the Leased Premises or to charge the rentals payable hereunder for any claim in favor of any person dealing with Tenant, including those who may furnish materials or perform labor for any construction or repairs, and each such claim shall not suffer affect and each such lien shall attach to, if at all, only the leasehold interest granted to Tenant by this Lease. Tenant covenants and agrees that it will pay or permit any mechanics' or other Liens cause to be filed or to exist against the Collateral or paid all sums legally due and payable by it on account of any payments paid or payable under the Loan Documents, by reason of work, labor, services labor performed or materials supplied or claimed to have been supplied to, for or furnished in connection with any work performed on the Collateral Leased Premises on which any lien is or to can be validly and legally asserted against its leasehold interest in the CompanyLeased Premises or the improvements thereon and that it will save and hold Landlord harmless from any and all loss, liability, cost or expense based on or arising out of asserted claims or liens against the Director leasehold estate or anyone holding against the Collateral or any part thereof through right, title and interest of the Landlord in the Leased Premises or under the Companyterms of this Lease. Tenant will not permit any mechanic's lien or liens or any other liens which may be imposed by law affecting Landlord's or its mortgagees' interest in the Leased Premises or the Building to be placed upon the Leased Premises or the Building arising out of any action or claimed action by Tenant, and in case of the filing of any such lien Tenant will promptly pay same. If any such Lien lien shall at any time be filed, the Company shall, within thirty remain in force and effect for twenty (3020) days after written notice thereof from Landlord to Tenant, Landlord shall have the right and privilege of paying and discharging the filing same or any portion thereof but subject without inquiry as to the right validity thereof, and any amounts so paid, including expenses and interest, shall be so much additional rent hereunder due from Tenant to contest as herein set forth, cause the same Landlord and shall be paid to be discharged Landlord immediately on rendition of record by payment, deposit, bond, order of a court of competent jurisdiction or otherwisexxxx therefor. Notwithstanding the foregoing, the Company Tenant shall have the right, at the Company's expense and after written notice to the Director, by appropriate proceeding timely instituted and diligently prosecuted, right to contest any such lien in good faith the validity or the amount of and with all due diligence so long as any such Lien. Ifcontest, howeveror action taken in connection therewith, protects the Director shall notify the Company that, interest of Landlord and Landlord's mortgagee in the opinion of Independent CounselLeased Premises, and Landlord and any such mortgagee are, by nonpayment the expiration of said twenty (20) day period, furnished such protection, and indemnification against any loss, liability, cost or expense related to any such items lien and the lien, pledge or security interest created by this Security Agreement contest thereof as are satisfactory to Landlord and any part of the Collateral will be materially affected or the Collateral or any part thereof will be subject to imminent loss or forfeiture, the Company shall promptly cause such Lien to be discharged of record, as herein provided. Should the Company fail to cause such Lien to be discharged or to contest the validity or amount thereof, within the period aforesaid, then, the Director may, but shall be under no obligation to, discharge the same either by paying the claim or by procuring the discharge of such Lien by making a deposit or obtaining a bond, which advances if any shall be paid by the Company to the Director on demand, together with interest thereon at the Interest Rate for Advances from the date thereof, in addition to all other payments to be made by the Company pursuant to the Loan Documents and shall be subject to and secured by this Security Agreement as additional indebtedness in accordance with the provisions of Section 2.8 hereofmortgagee.

Appears in 2 contracts

Samples: Lease Agreement (Atlas Financial Holdings, Inc.), Lease Agreement (Atlas Financial Holdings, Inc.)

Mechanics' and Other Liens. Except for Permitted EncumbrancesTenant shall have no authority, express or implied, to create or place any lien or encumbrance of any kind or nature whatsoever upon, or in any manner to bind, the Company interest of Landlord in the Leased Premises or to charge the rentals payable hereunder for any claim in favor of any person dealing with Tenant, including those who may furnish materials or perform labor for any construction or repairs, and each such claim shall not suffer affect and each such lien shall attach to, if at all, only the leasehold interest granted to Tenant by this Lease. Tenant covenants and agrees that it will pay or permit any mechanics' or other Liens cause to be filed or to exist against the Collateral or paid all sums legally due and payable by it on account of any payments paid or payable under the Loan Documents, by reason of work, labor, services labor performed or materials supplied or claimed to have been supplied to, for or furnished in connection with any work performed on the Collateral Leased Premises on which any lien is or to can be validly and legally asserted against its leasehold interest in the CompanyLeased Premises or the improvements thereon and that it will save and hold Landlord harmless from any and all loss, liability, cost or expense based on or arising out of asserted claims or liens against the Director leasehold estate or anyone holding against the Collateral or any part thereof through right, title and interest of Landlord in the Leased Premises or under the Companyterms of this Lease. Tenant will not permit any mechanic's lien or liens or any other liens which may be imposed by law affecting Landlord's or its mortgagees' interest in the Leased Premises or the Building to be placed upon the Leased Premises or the Building arising out of any action or claimed action by Tenant, and in case of the filing of any such lien Tenant will promptly pay same. If any such Lien lien shall at any time be filed, the Company shall, within thirty remain in force and effect for twenty (3020) days after written notice thereof from Landlord to Tenant, Landlord shall have the right and privilege of paying and discharging the filing same or any portion thereof but subject without inquiry as to the right validity thereof, and any amounts so paid, including expenses and interest, shall be so much additional rent hereunder due from Tenant to contest as herein set forth, cause the same Landlord and shall be paid to be discharged Landlord immediately on rendition of record by payment, deposit, bond, order of a court of competent jurisdiction or otherwisexxxx therefor. Notwithstanding the foregoing, the Company Tenant shall have the right, at the Company's expense and after written notice to the Director, by appropriate proceeding timely instituted and diligently prosecuted, right to contest any such lien in good faith the validity or the amount of and with all due diligence so long as any such Lien. Ifcontest, howeveror action taken in connection therewith, protects the Director shall notify the Company that, interest of Landlord and Landlord's mortgagee in the opinion of Independent CounselLeased Premises, and Landlord and any such mortgagee are, by nonpayment the expiration of said twenty (20) day period, furnished such protection, and indemnification against any loss, liability, cost or expense related to any such items lien and the lien, pledge or security interest created by this Security Agreement contest thereof as are satisfactory to Landlord and any part of the Collateral will be materially affected or the Collateral or any part thereof will be subject to imminent loss or forfeiture, the Company shall promptly cause such Lien to be discharged of record, as herein provided. Should the Company fail to cause such Lien to be discharged or to contest the validity or amount thereof, within the period aforesaid, then, the Director may, but shall be under no obligation to, discharge the same either by paying the claim or by procuring the discharge of such Lien by making a deposit or obtaining a bond, which advances if any shall be paid by the Company to the Director on demand, together with interest thereon at the Interest Rate for Advances from the date thereof, in addition to all other payments to be made by the Company pursuant to the Loan Documents and shall be subject to and secured by this Security Agreement as additional indebtedness in accordance with the provisions of Section 2.8 hereofmortgagee.

Appears in 2 contracts

Samples: Lease Agreement (Atlas Financial Holdings, Inc.), Lease Agreement (Atlas Financial Holdings, Inc.)

Mechanics' and Other Liens. Except for Permitted EncumbrancesTenant shall have no authority, express or implied, to create or place any lien or encumbrance of any kind or nature whatsoever upon, or in any manner to bind, the Company interest of Landlord in the leased premises or to charge the rentals payable hereunder for any claim in favor of any person dealing with Tenant, including those who may furnish materials or perform labor for any construction or repairs, and each such claim shall not suffer affect and each such lien shall attach to, if at all, only the leasehold interest granted to Tenant by this Lease. Tenant covenants and agrees that it will pay or permit any mechanics' or other Liens cause to be filed or to exist against the Collateral or paid all sums legally due and payable by it on account of any payments paid or payable under the Loan Documents, by reason of work, labor, services labor performed or materials supplied or claimed to have been supplied to, for or furnished in connection with any work performed on the Collateral leased premises on which any lien is or to can be validly and legally asserted against its leasehold interest in the Companyleased premises or the improvements thereon and that it will save and hold Landlord harmless from any and all loss, liability, cost or expense based on or arising out of asserted claims or liens against the Director leasehold estate or anyone holding against the Collateral or any part thereof through right, title and interest of the Landlord in the leased premises or under the Companyterms of this Lease. Tenant will not permit any mechanic's lien or liens or any other liens which may be imposed by law affecting Landlord's or its mortgagees' interest in the leased premises or the Building to be placed upon the leased premises or the Building arising out of any action or claimed action by Tenant, and in case of the filing of such lien Tenant will promptly pay same. If any such Lien lien shall at any time be filed, the Company shall, within thirty remain in force and effect for twenty (3020) days after written notice thereof from Landlord to Tenant, Landlord shall have the right and privilege of paying and discharging the filing same or any portion thereof but subject without inquiry as to the right validity thereof, and amounts so paid, including expenses and interest, shall be so much additional rent hereunder due from Tenant to contest as herein set forth, cause the same Landlord and shall be paid to be discharged Landlord immediately on rendition of record by payment, deposit, bond, order of a court of competent jurisdiction or otherwisebxxx therefor. Notwithstanding the foregoing, the Company Tenant shall have the right, at the Company's expense and after written notice to the Director, by appropriate proceeding timely instituted and diligently prosecuted, right to contest any such lien in good faith the validity or the amount of and with all due diligence so long as any such Lien. Ifcontest, howeveror action and any such mortgagee are, by the expiration of said twenty (20) day period, the Director shall notify the Company thatTenant has furnished such protection, in the opinion of Independent Counseland indemnification against any loss, by nonpayment of liability, cost or expense related to any such items lien and the lien, pledge or security interest created by this Security Agreement contest thereof as are satisfactory to Landlord and any part of the Collateral will be materially affected or the Collateral or any part thereof will be subject to imminent loss or forfeiture, the Company shall promptly cause such Lien to be discharged of record, as herein provided. Should the Company fail to cause such Lien to be discharged or to contest the validity or amount thereof, within the period aforesaid, then, the Director may, but shall be under no obligation to, discharge the same either by paying the claim or by procuring the discharge of such Lien by making a deposit or obtaining a bond, which advances if any shall be paid by the Company to the Director on demand, together with interest thereon at the Interest Rate for Advances from the date thereof, in addition to all other payments to be made by the Company pursuant to the Loan Documents and shall be subject to and secured by this Security Agreement as additional indebtedness in accordance with the provisions of Section 2.8 hereofmortgagee.

Appears in 2 contracts

Samples: Lease Agreement (Entrade Inc), Lease Agreement (Entrade Inc)

Mechanics' and Other Liens. Except for Permitted Encumbrances, the Company Mortgagor shall not suffer or permit any mechanics' or other Liens liens to be filed or to exist against the Collateral or any payments paid or payable under the Loan Documents, Mortgaged Property by reason of work, labor, services or materials supplied or claimed to have been supplied to, for or in connection with the Collateral Mortgaged Property or to the Company, the Director Mortgagor or anyone holding the Collateral Mortgaged Property or any part thereof through or under the Company. If Mortgagor; provided, however, that if any such Lien lien shall at any time be filed, the Company Mortgagor shall, within thirty ten (3010) days after notice of the filing thereof but subject to the right to of contest as herein set forthforth herein, cause the same to be discharged of record by payment, deposit, bond, order of a court of competent jurisdiction or otherwise. Notwithstanding anything to the foregoingcontrary contained herein, the Company Mortgagor shall have the right, at the Company's its own expense and after prior written notice to the DirectorMortgagee, by appropriate proceeding timely proceedings duly instituted and diligently prosecuted, to contest in good faith the validity validity, applicability or the amount of any such Lien. Iflien if Mortgagor establishes an escrow or other security acceptable to Mortgagee (or, howeverat its option, Mortgagee may establish a reserve against loans otherwise available to Mortgagor or its affiliates) in an amount estimated by Mortgagee to be adequate to cover the Director shall notify the Company that, in the opinion of Independent Counsel, by nonpayment of any such items the lien, pledge or security interest created by this Security Agreement as to any part payment of the Collateral will be materially affected amount being contested with interest, costs and penalties and an additional sum to cover possible interest, costs and penalties; and, if the amount of such escrow or the Collateral other security (or reserve) is insufficient to pay any part thereof will be subject to imminent loss or forfeiture, the Company shall promptly cause such Lien amount adjudged by a court of competent jurisdiction to be discharged of recorddue, as herein provided. Should the Company fail to cause with all interest, costs and penalties thereon, Mortgagor shall pay such Lien to be discharged or to contest the validity or amount thereof, within the period aforesaid, then, the Director may, but shall be under deficiency no obligation to, discharge the same either by paying the claim or by procuring the discharge of such Lien by making a deposit or obtaining a bond, which advances if any shall be paid by the Company to the Director on demand, together with interest thereon at the Interest Rate for Advances from later than the date thereof, in addition to all other payments to be made by the Company pursuant to the Loan Documents and shall be subject to and secured by this Security Agreement as additional indebtedness in accordance with the provisions of Section 2.8 hereofsuch judgment becomes final.

Appears in 2 contracts

Samples: Reptron Electronics Inc, Reptron Electronics Inc

Mechanics' and Other Liens. Except for Permitted Encumbrances, the The Company shall not suffer or permit any mechanics' or other Liens liens to be filed or to exist against the Project nor any part thereof, nor against the Company's leasehold interest in the Project, nor against the Project Fund or the Collateral or any payments paid or payable under the Loan DocumentsProceeds Account, by reason of work, labor, services services, or materials supplied or claimed to have been supplied to, for or in connection with the Collateral Project or any part thereof or to the Company, Director or the Director Company or anyone holding the Collateral Project or any part thereof through or under the Company. Nothing in this Section shall require the Company to pay or discharge any such lien so long as the validity thereof shall be contested in good faith and by appropriate legal proceedings, provided that the Company shall have delivered to the Director an opinion of counsel, selected by the Company and reasonably acceptable to the Director, to the effect that nonpayment of any such lien during the pendency of such contest will not adversely affect the Director's right, title or interest in the Project. If any such Lien liens shall at any time be filed, the Company shall, within thirty (30) one hundred twenty days after notice of the filing thereof but subject to the right to contest as herein hereinafter set forth, cause the same to be discharged of record by payment, deposit, bond, order of a court of competent jurisdiction or otherwise. Notwithstanding the foregoing, If the Company shall have the right, at the Company's expense and after written notice to the Director, by appropriate proceeding timely instituted and diligently prosecuted, to contest in good faith the validity or the amount of any such Lien. If, however, the Director shall notify the Company that, in the opinion of Independent Counsel, by nonpayment of any such items the lien, pledge or security interest created by this Security Agreement as to any part of the Collateral will be materially affected or the Collateral or any part thereof will be subject to imminent loss or forfeiture, the Company shall promptly cause such Lien to be discharged of record, as herein provided. Should the Company fail to cause such Lien lien to be discharged discharged, or to contest the validity or amount thereof, within the period aforesaid, then, in addition to any other right or remedy of the Director, the Director may, but shall not be under no obligation obligated to, discharge the same either by paying the claim amount claimed to be due or by procuring the discharge of such Lien lien by making a deposit or obtaining a bond, which advances if any by bonding. Any amount paid by the Director shall be paid reimbursed by the Company to the Director on demand, together and if not so reimbursed on demand shall be paid by the Company with interest thereon thereof at the Interest Rate for Advances from the date thereof, in addition to all other payments to be made of payment by the Director, which amounts the Company pursuant agrees to the Loan Documents and shall be subject to and secured by this Security Agreement as additional indebtedness in accordance with the provisions of Section 2.8 hereofpay.

Appears in 2 contracts

Samples: Lease (Luiginos Inc), Luiginos Inc

Mechanics' and Other Liens. Except for Permitted EncumbrancesTenant shall have no authority, express or implied, to create or place any lien or encumbrance of any kind or nature whatsoever upon, or in any manner to bind, the Company interest of Landlord in the Leased Premises, the Building or the Property or to charge the Rent payable hereunder for any claim in favor of any person dealing with Tenant, including those who may furnish materials or perform labor for any construction or repairs, and each such claim shall not suffer affect and each such lien shall attach to, if at all, only the leasehold interest granted to Tenant by this Lease. Tenant covenants and agrees that it will pay or permit any mechanics' or other Liens cause to be filed or to exist against the Collateral or paid all sums due and payable by it on account of any payments paid or payable under the Loan Documents, by reason of work, labor, services labor performed or materials supplied or claimed to have been supplied to, for or furnished in connection with any work performed on the Collateral Leased Premises on which any lien is or to can be validly and legally asserted against its leasehold interest in the CompanyLeased Premises or the improvements thereon and that it will save and hold Landlord harmless from and against any and all loss, liability, cost or expense based on or arising out of asserted claims or liens against the leasehold estate or against the right, title and interest of the Landlord in the Leased Premises, the Director Building or anyone holding the Collateral or any part thereof through Property or under the Companyterms of this Lease. Tenant will not permit any construction or mechanic’s lien or liens or any other liens which may be imposed by law affecting Landlord’s or its mortgagees’ interest in the Leased Premises, the Building or the Property to be placed upon the Leased Premises, the Building or the Property arising out of any action or claimed action by Tenant, and in case of the filing of any such lien Tenant will promptly pay same. If any such Lien lien shall at any time be filed, the Company shall, within remain in force and effect for thirty (30) days after written notice thereof from Landlord to Tenant, Landlord shall have the right and privilege of paying and discharging the filing same or any portion thereof but subject without inquiry as to the right validity thereof, and any amounts so paid, including expenses and interest, shall be so much Additional Rent hereunder due from Tenant to contest as herein set forth, cause the same Landlord and shall be paid to be discharged Landlord immediately on rendition of record by payment, deposit, bond, order of a court of competent jurisdiction or otherwisexxxx therefore. Notwithstanding the foregoing, the Company Tenant shall have the right, at the Company's expense and after written notice to the Director, by appropriate proceeding timely instituted and diligently prosecuted, right to contest any such lien in good faith the validity or the amount of and with all due diligence so long as any such Lien. Ifcontest, howeveror action taken in connection therewith, protects the interest of Landlord and Landlord’s mortgagee in the Leased Premises, the Director shall notify Building and the Company thatProperty, in the opinion of Independent Counseland Landlord and any such mortgagee are, by nonpayment the expiration of said thirty (30) day period, furnished such protection, and indemnification against any loss, liability, cost or expense related to any such items lien and the lien, pledge or security interest created by this Security Agreement contest thereof as are satisfactory to Landlord and any part of the Collateral will be materially affected or the Collateral or any part thereof will be subject to imminent loss or forfeiture, the Company shall promptly cause such Lien to be discharged of record, as herein provided. Should the Company fail to cause such Lien to be discharged or to contest the validity or amount thereof, within the period aforesaid, then, the Director may, but shall be under no obligation to, discharge the same either by paying the claim or by procuring the discharge of such Lien by making a deposit or obtaining a bond, which advances if any shall be paid by the Company to the Director on demand, together with interest thereon at the Interest Rate for Advances from the date thereof, in addition to all other payments to be made by the Company pursuant to the Loan Documents and shall be subject to and secured by this Security Agreement as additional indebtedness in accordance with the provisions of Section 2.8 hereofmortgagee.

Appears in 2 contracts

Samples: Lease Agreement (Connecture Inc), Lease Agreement (Connecture Inc)

Mechanics' and Other Liens. Except for Permitted Encumbrances, the Company 12.01. Tenant shall not suffer any mechanic's or permit any mechanics' or other Liens materialmen's lien to be filed or to exist against the Collateral Premises, or any payments paid or payable under the Loan Documentspart thereof, by reason of work, labor, services or materials supplied performed by or claimed furnished to have been supplied to, for or in connection with the Collateral or to the Company, the Director Tenant or anyone holding the Collateral or any part thereof through or of the Premises under the CompanyTenant. If any such Lien lien shall at any time be filed, the Company Tenant shall, within thirty (30) days after notice of the filing thereof but subject to the right to contest as herein set forththereof, cause the same such lien to be discharged of record by payment, deposit, or by bond, or by order of a court of competent jurisdiction jurisdiction, or otherwiseotherwise or shall commence the contest of said lien and provide Landlord with reasonably adequate security against such contested claim. Notwithstanding In the foregoingevent of Tenant's failure to discharge or commence contest of any such lien within such period, the Company Landlord shall have the rightright and privilege, at Landlord's option, of removing said lien by paying the Company's expense and after written notice to the Directorfull amount thereof or by bonding or in any other manner Landlord deems appropriate, by appropriate proceeding timely instituted and diligently prosecuted, to contest in good faith without investigating the validity thereof and irrespective of the fact that Tenant may contest the propriety or the amount of thereof, and any such Lien. Ifamount so paid, however, including any attorneys' fees and all expenses connected therewith and interest at the Director rate set forth in paragraph 3.04 on any sums paid or advanced shall notify the Company that, in the opinion of Independent Counsel, by nonpayment of any such items the lien, pledge or security interest created by this Security Agreement as to any part of the Collateral will be materially affected or the Collateral or any part thereof will be subject to imminent loss or forfeiture, the Company shall promptly cause such Lien deemed to be discharged of record, as herein provided. Should the Company fail additional Rent due from Tenant to cause such Lien to be discharged or to contest the validity or amount thereof, within the period aforesaid, then, the Director may, but shall be under no obligation to, discharge the same either by paying the claim or by procuring the discharge of such Lien by making a deposit or obtaining a bond, which advances if any shall be paid by the Company to the Director on demand, together with interest thereon at the Interest Rate for Advances from the date thereof, in addition to all other payments to be made by the Company pursuant to the Loan Documents Landlord and shall be subject repaid to Landlord immediately on rendition to Tenant of a statement therefor. Tenant will defend, indemnify and secured save harmless Landlord from and against all loss, claims, damages, costs or expenses suffered by this Security Agreement as additional indebtedness in accordance with the provisions Landlord by reason of Section 2.8 hereofany repairs, installations or improvements made by Tenant.

Appears in 2 contracts

Samples: 7 Lease Agreement (Pra International Inc), 6 Lease Agreement (Pra International Inc)

Mechanics' and Other Liens. Except for Permitted EncumbrancesTenant shall have no authority, express or implied, to create or place any lien or encumbrance of any kind or nature whatsoever upon, or in any manner to bind, the Company interest of Landlord in the premises or to charge the rentals payable hereunder for any claim in favor of any person dealing with Tenant, including those who may furnish materials or perform labor for any construction or repairs, and each such claim shall not suffer affect and each such lien shall attach to, if at all, only the leasehold interest granted to Tenant by this instrument. Tenant covenants and agrees that it will pay or permit any mechanics' or other Liens case to be filed or to exist against the Collateral or paid all sums legally due and payable by it on account of any payments paid or payable under the Loan Documents, by reason of work, labor, services labor performed or materials supplied or claimed to have been supplied to, for or furnished in connection with any work performed on the Collateral premises on which any lien is or to can be validly and legally asserted against its leasehold interest in the Companypremises or the improvements thereon and that it will save and hold Landlord harmless from any and all loss, cost or expense based on or arising out of asserted claims o liens against the Director leasehold estate or anyone holding against the Collateral or any part thereof through right, title and interest of the Landlord in the premises or under the Companyterms of this lease. Tenant will not permit any mechanic's lien or liens or any other liens which may be imposed by law affecting Landlord's or its mortgagee's interest in the premises or any building or other improvement of which the premises are a part to be placed upon the premises or any building or improvement thereon during the term hereof, and in case of the filing of any such lien Tenant will promptly pay same. If any such Lien lien shall at any time be filed, the Company shall, within thirty remain in force and effect for twenty (3020) days after written notice thereof from Landlord to Tenant, Landlord shall have the right and privilege at Landlord's option of paying and discharging the filing same or any portion thereof but subject without inquiry as to the right validity thereof, and any amounts so paid, including expenses and interest, shall be so much additional indebtedness hereunder due from Tenant to contest as herein set forth, cause the same Landlord and shall be repaid to be discharged of record by payment, deposit, bond, order Landlord immediately on rendition of a court of competent jurisdiction or otherwisexxxx therefor. Notwithstanding the foregoing, the Company Tenant shall have the right, at the Company's expense and after written notice to the Director, by appropriate proceeding timely instituted and diligently prosecuted, right to contest any such lien in good faith the validity or the amount of and with all due diligence so long as any such Lien. Ifcontest, howeveror action taken in connection therewith, protects the Director shall notify the Company that, interest of Landlord and Landlord's mortgagee in the opinion of Independent Counselpremises and Landlord and any such mortgagee are, by nonpayment the expiration of said twenty (20) day period, furnished such protection, and indemnification against any loss, cost or expense related to any such items lien and the lien, pledge or security interest created by this Security Agreement contest thereof as are satisfactory to Landlord and any part of the Collateral will be materially affected or the Collateral or any part thereof will be subject to imminent loss or forfeiture, the Company shall promptly cause such Lien to be discharged of record, as herein provided. Should the Company fail to cause such Lien to be discharged or to contest the validity or amount thereof, within the period aforesaid, then, the Director may, but shall be under no obligation to, discharge the same either by paying the claim or by procuring the discharge of such Lien by making a deposit or obtaining a bond, which advances if any shall be paid by the Company to the Director on demand, together with interest thereon at the Interest Rate for Advances from the date thereof, in addition to all other payments to be made by the Company pursuant to the Loan Documents and shall be subject to and secured by this Security Agreement as additional indebtedness in accordance with the provisions of Section 2.8 hereofmortgagee.

Appears in 1 contract

Samples: Lease Agreement (Factory Card Outlet Corp)

Mechanics' and Other Liens. Except for Permitted Encumbrancesa. Tenant shall have no authority, express or implied, to create or place any lien or encumbrance of any kind or nature whatsoever upon, or any manner to bind, the Company interest of Landlord in the Leased Premises or to charge the Rent payable hereunder by Xxxxxx for any claim in favor of any person dealing with Xxxxxx, including those who may furnish materials or perform labor, construction or repairs for Tenant, and each such claim shall not suffer affect under contract with Tenant and each such lien shall attach to, if at all, only the leasehold interest granted to Tenant pursuant to this Lease. Tenant covenants and agrees that it will pay or permit any mechanics' or other Liens cause to be filed or to exist against the Collateral or any payments paid or all sums legally due and payable under the Loan Documents, by reason it on account of work, labor, services labor performed or materials supplied or claimed to have been supplied to, for or furnished in connection with any work performed on the Collateral Leased Premises under contracts executed by Tenant on which any lien is or to can be validly and legally asserted against its leasehold interest in the CompanyLeased Premises or the Improvements, and that it will save and hold Landlord harmless from any and all loss, liability, cost or expense based on or arising out of asserted claims or liens against the Director leasehold estate of Tenant or anyone holding against the Collateral or any part thereof through right, title and interest of Landlord in the Leased Premises or under the Companyterms of this Lease. Tenant will not permit any mechanic’s lien or liens or any other liens which may be imposed by law affecting Landlord’s or its Mortgagees’ interests in the Leased Premises or the Improvements to be placed upon the Leased Premises or the Improvements arising out of any action or claimed action by Xxxxxx, and in case of the filing of any such lien Tenant will promptly pay or discharge the same. If any such Lien lien shall at any time be filed, the Company shall, within remain in force and effect for thirty (30) days after written notice thereof from Landlord to Tenant, Landlord shall have the right and privilege of paying and discharging the filing same or any portion thereof but subject without inquiry as to the right validity thereof, and any amounts so paid, including expenses and interest, shall be paid by Tenant to contest Landlord, as herein set forthAdditional Rent hereunder, cause the same to be discharged of record by payment, deposit, bond, order immediately on rendition of a court of competent jurisdiction or otherwisebill therefor. Notwithstanding the foregoing, the Company Tenant shall have the right, at the Company's expense and after written notice to the Director, by appropriate proceeding timely instituted and diligently prosecuted, right to contest any such lien in good faith the validity or the amount of and with all due diligence so long as any such Lien. Ifcontest, however, or action taken in connection therewith protects the Director shall notify the Company that, interests of Landlord and any Mortgagee in the opinion of Independent CounselLeased Premises and the Land, and Landlord and any such Mortgagee are, by nonpayment the expiration of said thirty (30) day period, furnished such reasonable protection, and reasonable indemnification against any loss, liability, cost or expense related to any such items lien and the lien, pledge or security interest created by this Security Agreement contest thereof as are reasonably satisfactory to Landlord and any part of the Collateral will be materially affected or the Collateral or any part thereof will be subject to imminent loss or forfeiture, the Company shall promptly cause such Lien to be discharged of record, as herein provided. Should the Company fail to cause such Lien to be discharged or to contest the validity or amount thereof, within the period aforesaid, then, the Director may, but shall be under no obligation to, discharge the same either by paying the claim or by procuring the discharge of such Lien by making a deposit or obtaining a bond, which advances if any shall be paid by the Company to the Director on demand, together with interest thereon at the Interest Rate for Advances from the date thereof, in addition to all other payments to be made by the Company pursuant to the Loan Documents and shall be subject to and secured by this Security Agreement as additional indebtedness in accordance with the provisions of Section 2.8 hereofMortgagee.

Appears in 1 contract

Samples: Lease Agreement

Mechanics' and Other Liens. Except for Permitted EncumbrancesTenant shall have no authority, express or implied, to create or place any lien or encumbrance of any kind or nature whatsoever upon, or in any manner to bind, the Company interest of Landlord or Tenant in the Premises or to charge the rentals payable hereunder for any claim in favor of any person dealing with Tenant, including those who may furnish materials or perform labor for any construction or repairs, and each such claim shall not suffer affect and each such lien shall attach to, if at all, only the Leasehold interest granted to Tenant by this instrument. Tenant covenants and agrees that it will pay or permit any mechanics' or other Liens cause to be filed or to exist against the Collateral or paid all sums legally due and payable by it on account of any payments paid or payable under the Loan Documents, by reason of work, labor, services labor performed or materials supplied or claimed to have been supplied to, for or furnished in connection with any work performed on the Collateral Premises on which any lien is or to can be validly and legally asserted against its leasehold interest in the CompanyPremises or the improvements thereon and that it will save and hold Landlord harmless from any and all loss, cost or expense including attorney's fees and costs, based on or arising out of asserted claims or liens against the Director leasehold estate or anyone holding against the Collateral or any part thereof through right, title and interest of the Landlord in the Premises or under the Companyterms of this Lease. Tenant will not permit any mechanic's lien or liens or any other liens which may be imposed by law affecting Landlord's or its mortgagees' interest in the Premises or any building or other improvement of which the Premises are a part to be placed upon the Premises or any building or improvement thereon during the term hereof, and in case of the filing of any such lien Tenant will promptly pay same. If any such Lien lien shall at any time be filed, the Company shall, within thirty remain in force and effect for twenty (3020) days after written notice thereof from Landlord to Tenant and Tenant has not provided such assurances to Landlord, (including but not limited to, waivers of lien, surety company performance bonds and personal guaranties of companies or individuals of substance) as Landlord shall reasonably require to protect Landlord against any loss from any such lien, Landlord shall have the filing right and privilege at Landlord's option of paying and discharging the same or any portion thereof but subject without inquiry as to the right validity thereof and any amounts so paid, including expenses and interest, shall be so much additional indebtedness hereunder due from Tenant to contest as herein set forth, cause the same Landlord and shall be repaid to be discharged of record by payment, deposit, bond, order Landlord immediately on rendition of a court of competent jurisdiction or otherwisexxxx therefor. Notwithstanding the foregoing, the Company Tenant shall have the right, at the Company's expense and after written notice to the Director, by appropriate proceeding timely instituted and diligently prosecuted, right to contest any such lien in good faith the validity or the amount of and with all due diligence so long as any such Lien. Ifcontest or action taken in connection therewith, however, protects the Director shall notify the Company that, interest of Landlord and Landlord's mortgagee in the opinion of Independent CounselPremises and Landlord and any such mortgagee are, by nonpayment the expiration of said twenty (20) day period, furnished such protection, and indemnification against any loss, cost or expense related to any such items lien and the lien, pledge or security interest created by this Security Agreement contest thereof as are subjectively satisfactory to Landlord and any part of the Collateral will be materially affected or the Collateral or any part thereof will be subject to imminent loss or forfeiture, the Company shall promptly cause such Lien to be discharged of record, as herein provided. Should the Company fail to cause such Lien to be discharged or to contest the validity or amount thereof, within the period aforesaid, then, the Director may, but shall be under no obligation to, discharge the same either by paying the claim or by procuring the discharge of such Lien by making a deposit or obtaining a bond, which advances if any shall be paid by the Company to the Director on demand, together with interest thereon at the Interest Rate for Advances from the date thereof, in addition to all other payments to be made by the Company pursuant to the Loan Documents and shall be subject to and secured by this Security Agreement as additional indebtedness in accordance with the provisions of Section 2.8 hereofmortgagee.

Appears in 1 contract

Samples: Lease Agreement (Dt Industries Inc)

Mechanics' and Other Liens. Except for Permitted EncumbrancesA. Tenant shall have no authority, express or implied, to create or place any lien or encumbrance of any kind or nature whatsoever upon, or in any manner to bind, the Company interest of Landlord in the leased premises or to charge the rentals payable hereunder for any claim in favor of any person dealing with Tenant, including those who may furnish materials or perform labor for any construction or repairs, and each such claim shall not suffer affect and each such lien shall attach to, if at all, only the leasehold interest granted to Tenant by this lease. Tenant covenants and agrees that it will pay or permit any mechanics' or other Liens cause to be filed or to exist against the Collateral or paid all sums legally due and payable by it on account of any payments paid or payable under the Loan Documents, by reason of work, labor, services labor performed or materials supplied or claimed to have been supplied to, for or furnished in connection with any work performed on the Collateral leased premises on which any lien is or to can be validly and legally asserted against its leasehold interest in the Companyleased premises or the improvements thereon and that it will save and hold Landlord harmless from any and all loss, liability, cost or expense based on or arising out of asserted claims or liens against the Director leasehold estate or anyone holding against the Collateral or any part thereof through right, title and interest of the Landlord in the leased premises or under the Companyterms of this lease. Tenant will not permit any mechanic’s lien or liens or any other liens which may be imposed by law affecting Landlord’s or its mortgagees’ interest in the leased premises or the Building to be placed upon the leased premises or the Building arising out of any action or claimed action by Tenant, and in case of the filing of any such lien Tenant will promptly pay same. If any such Lien lien shall at remain in force and effect for twenty (20) days, Landlord shall have the right and privilege of paying and discharging the same or any time be filed, the Company shall, within thirty (30) days after notice of the filing portion thereof but subject without inquiry as to the right validity thereof, and any amounts so paid, including expenses and interest, shall be so much additional rent hereunder due from Tenant to contest as herein set forth, cause the same Landlord and shall be paid to be discharged Landlord immediately on rendition of record by payment, deposit, bond, order of a court of competent jurisdiction or otherwisebxxx therefor. Notwithstanding the foregoing, the Company Tenant shall have the right, at the Company's expense and after written notice to the Director, by appropriate proceeding timely instituted and diligently prosecuted, right to contest any such lien in good faith the validity or the amount of and with all due diligence so long as any such Lien. Ifcontest, howeveror action taken in connection therewith, protects the Director shall notify the Company that, interest of Landlord and Landlord’s mortgagee in the opinion of Independent Counselleased premises, and Landlord and any such mortgagee are, by nonpayment the expiration of said twenty (20) day period, furnished such protection, and indemnification against any loss, liability, cost or expense related to any such items lien and the lien, pledge or security interest created by this Security Agreement contest thereof as are satisfactory to Landlord and any part of the Collateral will be materially affected or the Collateral or any part thereof will be subject to imminent loss or forfeiture, the Company shall promptly cause such Lien to be discharged of record, as herein provided. Should the Company fail to cause such Lien to be discharged or to contest the validity or amount thereof, within the period aforesaid, then, the Director may, but shall be under no obligation to, discharge the same either by paying the claim or by procuring the discharge of such Lien by making a deposit or obtaining a bond, which advances if any shall be paid by the Company to the Director on demand, together with interest thereon at the Interest Rate for Advances from the date thereof, in addition to all other payments to be made by the Company pursuant to the Loan Documents and shall be subject to and secured by this Security Agreement as additional indebtedness in accordance with the provisions of Section 2.8 hereofmortgagee.

Appears in 1 contract

Samples: Lease Agreement (Double-Take Software, Inc.)

Mechanics' and Other Liens. Except If, because of any work done in or on or any materials furnished to the Premises at the instance of Tenant, or because of any other act or failure to act on the part of Tenant or any person for Permitted Encumbranceswhom Tenant is legally responsible, the Company shall not suffer any mechanic's lien or permit any mechanics' judgment, tax or other Liens lien shall be filed for record against the Premises, then regardless of whether such lien is valid or enforceable as such, Tenant shall, at its own expense, cause such lien to be filed or to exist against the Collateral or any payments paid or payable under the Loan Documents, by reason of work, labor, services or materials supplied or claimed to have been supplied to, for or in connection with the Collateral or to the Company, the Director or anyone holding the Collateral or any part thereof through or under the Company. If any such Lien shall at any time be filed, the Company shall, discharged within thirty (30) days after written notice from Landlord, by bonding proceedings or otherwise. In addition, Tenant shall indemnify and hold harmless Landlord from any claim, damage, loss, liability, settlement, judgment or other cost and expense, including attorneys' fees, resulting from or by reason of the filing thereof but subject any such lien. If Tenant shall fail to the right to contest take such actions as herein set forth, shall cause the same such lien to be discharged of record by paymentwithin said thirty (30) day period, deposit, bond, order of a court of competent jurisdiction or otherwise. Notwithstanding the foregoing, the Company shall have the rightLandlord may, at the Company's expense and after written notice to the Directorits option, by appropriate proceeding timely instituted and diligently prosecuted, to contest in good faith the validity or pay the amount of any such Lien. If, however, lien or may discharge the Director shall notify the Company thatsame by bonding proceedings and, in the opinion event of Independent Counselsuch bonding proceedings, Landlord may require the lienor to prosecute the appropriate action to enforce the lienor's claim. Any such amount paid or expense incurred by nonpayment Landlord, or any expense incurred or sum of money paid by Landlord by reason of the failure of Tenant to comply with the foregoing provisions of this paragraph, or in defending any such items the lienaction, pledge or security interest created shall become immediately due and payable as additional rent by this Security Agreement as Tenant to any part of the Collateral will be materially affected or the Collateral or any part thereof will be subject to imminent loss or forfeiture, the Company shall promptly cause such Lien to be discharged of record, as herein provided. Should the Company fail to cause such Lien to be discharged or to contest the validity or amount thereof, within the period aforesaid, then, the Director may, but shall be under no obligation to, discharge the same either by paying the claim or by procuring the discharge of such Lien by making a deposit or obtaining a bond, which advances if any shall be paid by the Company to the Director on demandLandlord, together with interest thereon at the Interest Default Rate for Advances thereon from the date thereof, in addition to all other payments of payment by Landlord until paid by Tenant. Any such payment or discharge by Landlord shall not be deemed to be made by the Company pursuant to the Loan Documents and shall be subject to and secured by this Security Agreement as additional indebtedness in accordance with a waiver of any other rights which Landlord may have under the provisions of Section 2.8 hereofthis Lease or as provided by law.

Appears in 1 contract

Samples: Lease Agreement (Safe Auto Group, Inc.)

Mechanics' and Other Liens. Except for Permitted Encumbrances, the The Company shall not suffer or permit any mechanics' or other Liens liens to be filed or to exist against the Collateral or any payments paid or payable under the Loan Documents, by reason of work, labor, services or materials supplied or claimed to have been supplied to, for or in connection with the Collateral or to the Company, the Director Company or anyone holding the Collateral or any part thereof through or under the Company. If any such Lien lien shall at any time be filed, the Company shall, shall within thirty (30) days after notice of the filing thereof but subject to the right to contest as herein hereinafter set forth, cause the same to be discharged of record by payment, deposit, bond, order of a court of competent jurisdiction or otherwise. Notwithstanding the foregoing, the Company shall have the right, at the Company's own expense and after prior written notice to the Director, by appropriate proceeding timely instituted and diligently prosecuted, to contest in good faith the validity or the amount of any such Lienlien. IfHowever, however, if the Director shall notify the Company that, in the opinion of Independent Counsel, by nonpayment of any such items the lienpledge, pledge lien or security interest created by this Security Agreement as to any part of the Collateral will be materially affected or the Collateral or any part thereof will be subject to imminent loss or forfeiture, the Company shall promptly cause such Lien lien to be discharged of record, as herein provided. Should the Company fail to cause such Lien lien to be discharged or to contest the validity or amount thereof, within the period aforesaid, then, the Director may, but shall be under no obligation to, discharge the same either by paying the claim or by procuring the discharge of such Lien lien by making a deposit or obtaining a bond, which advances if any shall be paid by the Company secured hereby and shall be repayable to the Director on demand, together with interest thereon at the Interest Rate for Advances from the date thereof, as provided in addition to all other payments to be made by the Company pursuant to the Loan Documents and shall be subject to and secured by this Security Agreement as additional indebtedness in accordance with the provisions of Section 2.8 3.5 hereof.

Appears in 1 contract

Samples: Security Agreement (PAV Republic, Inc.)

Mechanics' and Other Liens. Except for Permitted EncumbrancesTenant shall have no authority, express or implied to create or place any lien or encumbrance of any kind or nature whatsoever upon, or in any manner to bind, the Company interest of Landlord in the Premises or to charge the rentals payable hereunder for any claim in favor of any person dealing with Tenant, including those who may furnish materials or perform labor for any construction or repairs, and each such claim shall not suffer affect and each such lien shall attach to, if at all, only the leasehold interest granted to Tenant by this instrument. Tenant covenants and agrees that it will pay or permit any mechanics' or other Liens cause to be filed or to exist against the Collateral or paid all sums legally due and payable by it on account of any payments paid or payable under the Loan Documents, by reason of work, labor, services labor performed or materials supplied or claimed to have been supplied to, for or furnished in connection with any work performed on the Collateral Premises on which any lien is or to can be validly and legally asserted against its leasehold interest in the CompanyPremises or the improvements thereon and that it will save and hold Landlord harmless from any and all loss, cost or expense based on or arising out of asserted claims or liens against the Director leasehold estate or anyone holding against the Collateral or any part thereof through right, title and interest of Landlord in the Premises or under the Companyterms of this Lease. Tenant will not permit any mechanic’s lien or liens or any other liens which may be imposed by law affecting Landlord’s or its mortgagees’ interest in the Building to be placed upon the Building, and in case of the filing of any such lien Tenant will promptly pay same. If any such Lien lien shall at any time be filed, the Company shall, within thirty remain in force and effect for twenty (3020) days after written notice thereof, Landlord shall have the right and privilege at Landlord’s option of paying and discharging the filing same or any portion thereof but subject without inquiry as to the right validity thereof, and any amounts so paid, including reasonable expenses and interest, shall be so much additional indebtedness hereunder due from Tenant to contest as herein set forth, cause the same Landlord and shall be repaid to be discharged of record by payment, deposit, bond, order Landlord immediately on rendition of a court of competent jurisdiction or otherwisexxxx therefore. Notwithstanding the foregoing, the Company Tenant shall have the right, at the Company's expense and after written notice to the Director, by appropriate proceeding timely instituted and diligently prosecuted, right to contest any such lien in good faith the validity or the amount of and with all due diligence so long as any such Liencontest, or action taken in connection therewith, protects the interest of Landlord and Landlord’s mortgagee in the Premises and Landlord and any such mortgagee are, by the expiration of said twenty (20) day period, furnished such protection and indemnification against any loss, cost or expense related to any such Lien and the contest thereof as are satisfactory to Landlord and any such mortgagee. If, however, the Director Tenant shall notify the Company that, in the opinion of Independent Counsel, by nonpayment of any such items the lien, pledge or security interest created by this Security Agreement as to any part all potential lienors with which it deals of the Collateral will be materially affected or the Collateral or any part thereof will be subject to imminent loss or forfeiture, the Company shall promptly cause such Lien to be discharged contents of record, as herein provided. Should the Company fail to cause such Lien to be discharged or to contest the validity or amount thereof, within the period aforesaid, then, the Director may, but shall be under no obligation to, discharge the same either by paying the claim or by procuring the discharge of such Lien by making a deposit or obtaining a bond, which advances if any shall be paid by the Company to the Director on demand, together with interest thereon at the Interest Rate for Advances from the date thereof, in addition to all other payments to be made by the Company pursuant to the Loan Documents and shall be subject to and secured by this Security Agreement as additional indebtedness in accordance with the provisions of Section 2.8 hereof26.01.

Appears in 1 contract

Samples: Sublease (Biopower Operations Corp)

Mechanics' and Other Liens. Except for Permitted Encumbrances, the The Company shall not suffer or permit any mechanics' or other Liens liens to be filed or to exist against the Project nor any part thereof, nor against the Project Fund or the Collateral or any payments paid or payable under the Loan DocumentsProceeds Account, by reason of work, labor, services services, or materials supplied or claimed to have been supplied to, for or in connection with the Collateral Project or any part thereof or to the Company, the Director Company or anyone holding the Collateral Project or any part thereof through or under the Company. If any such Lien liens shall at any time be filed, the Company shall, within thirty one hundred twenty days (30120) days after notice of the filing thereof but thereofbut subject to the right to contest as herein hereinafter set forth, cause the same to be discharged of record by payment, deposit, bond, order of a court of competent jurisdiction or otherwise. Notwithstanding the foregoing, If the Company shall have the right, at the Company's expense and after written notice to the Director, by appropriate proceeding timely instituted and diligently prosecuted, to contest in good faith the validity or the amount of any such Lien. If, however, the Director shall notify the Company that, in the opinion of Independent Counsel, by nonpayment of any such items the lien, pledge or security interest created by this Security Agreement as to any part of the Collateral will be materially affected or the Collateral or any part thereof will be subject to imminent loss or forfeiture, the Company shall promptly cause such Lien to be discharged of record, as herein provided. Should the Company fail to cause such Lien lien to be discharged discharged, or to contest the validity or amount thereof, within the period aforesaid, then, in addition to any other right or remedy of the Director, the Director may, but shall not be under no obligation obligated to, discharge the same either by paying the claim amount claimed to be due or by procuring the discharge of such Lien lien by making a deposit or obtaining a bond, which advances if any by bonding. Any amount paid by the Director shall be paid reimbursed by the Company to the Director on demand, together and if not so reimbursed on demand shall be paid by the Company with interest thereon thereof at the Interest Rate for Advances from the date thereofof payment by the Director, which amounts the Company agrees to pay. Nothing in addition this Section shall require the Company to all other payments payor discharge any such lien so long as the validity thereof shall be contested in good faith and by appropriate legal proceedings, provided that the Company shall have delivered to be made the Director an opinion of counsel, selected by the Company pursuant and reasonably acceptable to the Loan Director, to the effect that nonpayment of any such lien during the pendency of such contest will not adversely affect the priority of the liens of the Security Documents and shall be subject to and secured by this Security Agreement as additional indebtedness on right, title or interest in accordance with the provisions Project. [End of Section 2.8 hereof.Article VII]

Appears in 1 contract

Samples: Loan Agreement (Kahiki Foods Inc)

Mechanics' and Other Liens. Except for Permitted Encumbrances, the Company The TDD Bonds Beneficiary shall not suffer or permit any mechanics' or other Liens liens to be filed or to exist against the Collateral Project nor any part thereof, nor against the Project Fund or any payments paid or payable under the Loan Documents, by reason of work, labor, services or materials supplied or claimed to have been supplied to, for or in connection with the Collateral or to the Company, the Director or anyone holding the Collateral or any part thereof through or under the CompanyProceeds Account. If any such Lien liens shall at any time be filed, the Company TDD Bonds Beneficiary shall, within thirty (30) 120 days after notice of the filing thereof but subject to the right to contest as herein hereinafter set forth, cause the same to be discharged of record by payment, deposit, bond, order of a court of competent jurisdiction or otherwise. Notwithstanding If the foregoing, the Company TDD Bonds Beneficiary shall have the right, at the Company's expense and after written notice to the Director, by appropriate proceeding timely instituted and diligently prosecuted, to contest in good faith the validity or the amount of any such Lien. If, however, the Director shall notify the Company that, in the opinion of Independent Counsel, by nonpayment of any such items the lien, pledge or security interest created by this Security Agreement as to any part of the Collateral will be materially affected or the Collateral or any part thereof will be subject to imminent loss or forfeiture, the Company shall promptly cause such Lien to be discharged of record, as herein provided. Should the Company fail to cause such Lien lien to be discharged discharged, or to contest the validity or amount thereof, within the period aforesaid, then, in addition to any other right or remedy of the Director, the Director may, but shall not be under no obligation obligated to, discharge the same either by paying the claim amount claimed to be due or by procuring the discharge of such Lien lien by making a deposit or obtaining a bond, which advances if any shall be by bonding. Any amount paid by the Company Director shall be reimbursed by the TDD Bonds Beneficiary to the Director on demand, together and if not so reimbursed on demand shall be paid by the TDD Bonds Beneficiary with interest thereon thereof at the Interest Rate for Advances from the date thereof, in addition to all other payments to be made of payment by the Company pursuant Director, which amounts the TDD Bonds Beneficiary agrees to pay. Nothing in this Section shall require the TDD Bonds Beneficiary to pay or discharge any such lien so long as the validity thereof shall be contested in good faith and by appropriate legal proceedings, provided if the amount of the lien claim is in excess of $100,000, the TDD Bonds Beneficiary shall have delivered to the Loan Director an opinion of counsel, selected by the TDD Bonds Beneficiary and reasonably acceptable to the Director, to the effect that nonpayment of any such lien during the pendency of such contest will not adversely affect the priority of the liens of the Security Documents and shall be subject to and secured by this Security Agreement as additional indebtedness on right, title or interest in accordance with the provisions Project. [End of Section 2.8 hereof.Article VII]

Appears in 1 contract

Samples: Loan Agreement (Hall of Fame Resort & Entertainment Co)

Mechanics' and Other Liens. Except for Permitted EncumbrancesMortgagor, the Company and its assigns, shall not suffer or permit any mechanics' or other Liens ’ liens to be filed or to exist against the Collateral Mortgaged Property, or against any payment to be made under the Bond Lease or payment agreement, or any payments paid or payable under Payment Agreement as defined in the Loan Documents, bond documents by reason of work, labor, services or materials supplied or claimed to have been supplied to, for or in connection with the Collateral or to the Company, the Director Mortgagor or anyone holding the Collateral Project or the Project Site or any part thereof through or under the CompanyMortgagor. If any such Lien mechanics’ liens shall at any time be filed, the Company Mortgagor shall, within thirty (30) days after notice of the filing thereof but subject to the right to contest as herein set forththereof, cause the same to be discharged of record by payment, deposit, bond, order of a court of competent jurisdiction or otherwise; provided that if Mortgagor in good faith and by appropriate legal action shall contest the validity of any such mechanic’s lien, or the amount thereof, then Mortgagor shall not be required to discharge such mechanic’s lien so long as the contest is maintained and prosecuted with diligence, and shall not have been terminated or discontinued adversely to Mortgagor. Notwithstanding the foregoing, the Company shall have the right, at the Company's expense and after written notice to the Director, by appropriate proceeding timely instituted and diligently prosecuted, to contest in good faith the validity or the amount of any such Lien. If, however, the Director shall notify the Company if Mortgagee notifies Mortgagor that, in the opinion of Independent Counselcounsel selected by Mortgagee, by nonpayment of any such items mechanic’s lien the lien, pledge or security interest created by lien of this Security Agreement Mortgage as to any part of the Collateral Mortgaged Property will be materially affected or the Collateral Mortgaged Property or any part thereof will be subject to imminent loss or forfeiture, the Company Mortgagor shall promptly cause discharge such Lien to be discharged of record, as herein provided. Should the Company fail to cause such Lien to be discharged or to contest the validity or amount thereof, within the period aforesaid, then, the Director may, but shall be under no obligation to, discharge the same either by paying the claim or by procuring the discharge of such Lien by making a deposit or obtaining a bond, which advances if any shall be paid by the Company to the Director on demand, together with interest thereon at the Interest Rate for Advances from the date thereof, in addition to all other payments to be made by the Company pursuant to the Loan Documents and shall be subject to and secured by this Security Agreement as additional indebtedness in accordance with the provisions of Section 2.8 hereofmechanic’s lien.

Appears in 1 contract

Samples: Agreement in Lieu of Taxes

Mechanics' and Other Liens. Except for Permitted Encumbrances, the The Company shall not suffer or permit any mechanics' or other Liens liens to be filed or to exist against the Project nor any part thereof, nor against the Company's leasehold interest in the Project, nor against the Project Fund or the Collateral or any payments paid or payable under the Loan DocumentsProceeds Account, by reason of work, labor, services services, or materials supplied or claimed to have been supplied to, for for, or in connection with with, the Collateral Project or any part thereof or to the Company, Director or the Director Company or anyone holding the Collateral Project or any part thereof through or under the Company. Nothing in this Section shall require the Company to pay or discharge any such lien so long as the validity thereof shall be contested in good faith and by appropriate legal proceedings, provided that the Company shall have delivered to the Director an opinion of counsel, selected by the Company and reasonably acceptable to the Director, to the effect that nonpayment of any such lien during the pendency of such contest will not adversely affect the Director's right, title or interest in the Project. If any such Lien liens shall at any time be filed, the Company shall, within thirty one hundred twenty (30120) days after notice of the filing thereof but subject to the right to contest as herein set forthforth in the immediately preceding sentence, cause the same to be discharged of record by payment, deposit, bond, order of a court of competent jurisdiction or otherwise. Notwithstanding the foregoing, If the Company shall have the right, at the Company's expense and after written notice to the Director, by appropriate proceeding timely instituted and diligently prosecuted, to contest in good faith the validity or the amount of any such Lien. If, however, the Director shall notify the Company that, in the opinion of Independent Counsel, by nonpayment of any such items the lien, pledge or security interest created by this Security Agreement as to any part of the Collateral will be materially affected or the Collateral or any part thereof will be subject to imminent loss or forfeiture, the Company shall promptly cause such Lien to be discharged of record, as herein provided. Should the Company fail to cause such Lien lien to be discharged discharged, or to contest the validity or amount thereof, within the period aforesaid, then, in addition to any other right or remedy of the Director, the Director may, but shall not be under no obligation obligated to, discharge the same either by paying the claim amount claimed to be due or by procuring the discharge of such Lien lien by making a deposit or obtaining a bond, which advances if any by bonding. Any amount paid by the Director shall be paid reimbursed by the Company to the Director on demand, together and if not so reimbursed on demand shall be paid by the Company with interest thereon thereof at the Interest Rate for Advances from the date thereof, in addition to all other payments to be made of payment by the Director, which amounts the Company pursuant agrees to the Loan Documents and shall be subject to and secured by this Security Agreement as additional indebtedness in accordance with the provisions of Section 2.8 hereofpay.

Appears in 1 contract

Samples: Lease (Venture Service Co)

Mechanics' and Other Liens. Except for Permitted Encumbrances, the Company The Lessee shall not suffer or permit any mechanics' or other Liens liens to be filed or to exist (i) against the Collateral Project, nor (ii) against any account or any payments paid fund in which Rental Payments, Additional Payments or payable under proceeds of the Loan DocumentsProject Debt are deposited, by reason of work, labor, services or materials supplied or claimed to have been supplied to, for for, or in connection with the Collateral Project or to the Company, the Director Lessee or anyone holding the Collateral Project or any part thereof through or under the Company. If Lessee, or otherwise; provided, however, that if any such Lien liens shall at any time be filed, the Company Lessee shall, within thirty (30) ninety days after notice of the filing thereof but subject to the right to contest as herein hereinafter set forth, cause the same to be discharged of record by payment, deposit, bondbonding, order of a court of competent jurisdiction or otherwise. Notwithstanding the foregoing, the Company The Lessee shall have the right, but at the Company's expense its own cost and after written notice to the Director, by appropriate proceeding timely instituted and diligently prosecutedexpense, to contest in good faith the validity or the amount of any such Lien. Iflien by appropriate proceedings timely instituted, however, unless the Director Lessor shall notify the Company Lessee that, in the reasonable opinion of Independent Counselthe Lessor, by nonpayment of any such items the lien, pledge or security interest created by this Security Agreement as to any part of the Collateral will be materially affected Project or the Collateral moneys in such an account or any part thereof fund will be subject to imminent loss or forfeiture, in which event the Company Lessee shall promptly cause such Lien lien to be discharged as aforesaid or, in the case of recorda mechanics' or other lien filed against the Project, provisions reasonably satisfactory to the Lessor and the Lenders for payment by deposit or bonding shall be made promptly by the Lessee. Lessor will cooperate fully with the Lessee, but at the Lessee's expense, in any such contest (except as herein providedany such lien is asserted by the Lessor in which event the Lessee shall have the right to contest such lien as if it were the owner of the Project). Should If the Company Lessee shall fail to cause such Lien lien to be discharged discharged, or to contest the validity or amount thereof, within the period aforesaid, then, in addition to any other right or remedy of the Director Lessor, the Lessor may, but shall not be under no obligation obligated to, discharge the same either by paying the claim deposit or by procuring the discharge of such Lien by making a deposit or obtaining a bond, which advances if any shall be paid by the Company bonding following written notice to the Director on demand, together with interest thereon at the Interest Rate for Advances from the date thereof, in addition Lessee of Lessor's intention to all other payments to be made by the Company pursuant to the Loan Documents and shall be subject to and secured by this Security Agreement as additional indebtedness in accordance with the provisions of Section 2.8 hereoftake such action.

Appears in 1 contract

Samples: Brush Wellman Inc

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Mechanics' and Other Liens. Except for Permitted EncumbrancesTenant shall have no authority, express or implied, to create or place any lien or encumbrance of any kind or nature whatsoever upon, or in any manner to bind, the Company interest of Landlord in the Premises or to charge the rentals payable hereunder for any claim in favor of any person dealing with Tenant, including those who may furnish materials or perform labor for any construction or repairs, and each such claim shall not suffer affect and each such lien shall attach to, if at all, only the leasehold interest granted to Tenant by this Lease. Tenant covenants and agrees that it will pay or permit any mechanics' or other Liens cause to be filed or to exist against the Collateral or paid all sums legally due and payable by it on account of any payments paid or payable under the Loan Documents, by reason of work, labor, services labor performed or materials supplied or claimed to have been supplied to, for or furnished in connection with any work performed on the Collateral Premises on which any lien is or to can be validly and legally asserted against its leasehold interest in the CompanyPremises or the improvements thereon and that it will save and hold Landlord harmless from any and all loss, liability, cost or expense based on or arising out of asserted claims or liens against the Director leasehold estate or anyone holding against the Collateral or any part thereof through right, title and interest of the Landlord in the Premises or under the Companyterms of this Lease. Tenant will not permit any mechanic’s lien or liens or any other liens which may be imposed by law affecting Landlord’s or its Mortgagees’ interest in the Premises or the Building to be placed upon the Premises or the Building arising out of any action or claimed action by Tenant, and in case of the filing of any such lien Tenant will promptly pay same. If any such Lien lien shall at any time be filed, the Company shall, within thirty remain in force and effect for twenty (3020) days after written notice thereof from Landlord to Tenant, Landlord shall have the right and privilege of paying and discharging the filing same or any portion thereof but subject without inquiry as to the right validity thereof, and any amounts so paid, including expenses and interest, shall be so much additional rent hereunder due from Tenant to contest as herein set forth, cause the same Landlord and shall be paid to be discharged Landlord immediately on rendition of record by payment, deposit, bond, order of a court of competent jurisdiction or otherwisexxxx therefor. Notwithstanding the foregoing, the Company Tenant shall have the right, at the Company's expense and after written notice to the Director, by appropriate proceeding timely instituted and diligently prosecuted, right to contest any such lien in good faith the validity or the amount of and with all due diligence so long as any such Lien. Ifcontest, howeveror action taken in connection therewith, protects the Director shall notify the Company that, interest of Landlord and Landlord’s Mortgagee in the opinion of Independent CounselPremises, and Landlord and any such Mortgagee are, by nonpayment the expiration of said twenty (20) day period, furnished such protection, and indemnification against any loss, liability, cost or expense related to any such items lien and the lien, pledge or security interest created by this Security Agreement contest thereof as are satisfactory to Landlord and any part of the Collateral will be materially affected or the Collateral or any part thereof will be subject to imminent loss or forfeiture, the Company shall promptly cause such Lien to be discharged of record, as herein provided. Should the Company fail to cause such Lien to be discharged or to contest the validity or amount thereof, within the period aforesaid, then, the Director may, but shall be under no obligation to, discharge the same either by paying the claim or by procuring the discharge of such Lien by making a deposit or obtaining a bond, which advances if any shall be paid by the Company to the Director on demand, together with interest thereon at the Interest Rate for Advances from the date thereof, in addition to all other payments to be made by the Company pursuant to the Loan Documents and shall be subject to and secured by this Security Agreement as additional indebtedness in accordance with the provisions of Section 2.8 hereofMortgagee.

Appears in 1 contract

Samples: Lease Agreement (RestorGenex Corp)

Mechanics' and Other Liens. Except for Permitted Encumbrancesa. Tenant shall have no authority, express or implied, to create or place any lien or encumbrance of any kind or nature whatsoever upon, or any manner to bind, the Company interest of Landlord in the Leased Premises or to charge the Rent payable hereunder by Tenant for any claim in favor of any person dealing with Tenant, including those who may furnish materials or perform labor, construction or repairs for Tenant, and each such claim shall not suffer affect under contract with Tenant and each such lien shall attach to, if at all, only the leasehold interest granted to Tenant pursuant to this Lease. Tenant covenants and agrees that it will pay or permit any mechanics' or other Liens cause to be filed or to exist against the Collateral or any payments paid or all sums legally due and payable under the Loan Documents, by reason it on account of work, labor, services labor performed or materials supplied or claimed to have been supplied to, for or furnished in connection with any work performed on the Collateral Leased Premises under contracts executed by Tenant on which any lien is or to can be validly and legally asserted against its leasehold interest in the CompanyLeased Premises or the Improvements, and that it will save and hold Landlord harmless from any and all loss, liability, cost or expense based on or arising out of asserted claims or liens against the Director leasehold estate of Tenant or anyone holding against the Collateral or any part thereof through right, title and interest of Landlord in the Leased Premises or under the Companyterms of this Lease. Tenant will not permit any mechanic’s lien or liens or any other liens which may be imposed by law affecting Landlord’s or its Mortgagees’ interests in the Leased Premises or the Improvements to be placed upon the Leased Premises or the Improvements arising out of any action or claimed action by Tenant, and in case of the filing of any such lien Tenant will promptly pay or discharge the same. If any such Lien lien shall at any time be filed, the Company shall, within remain in force and effect for thirty (30) days after written notice thereof from Landlord to Tenant, Landlord shall have the right and privilege of paying and discharging the filing same or any portion thereof but subject without inquiry as to the right validity thereof, and any amounts so paid, including expenses and interest, shall be paid by Tenant to contest Landlord, as herein set forthAdditional Rent hereunder, cause the same to be discharged of record by payment, deposit, bond, order immediately on rendition of a court of competent jurisdiction or otherwisexxxx therefor. Notwithstanding the foregoing, the Company Tenant shall have the right, at the Company's expense and after written notice to the Director, by appropriate proceeding timely instituted and diligently prosecuted, right to contest any such lien in good faith the validity or the amount of and with all due diligence so long as any such Lien. Ifcontest, however, or action taken in connection therewith protects the Director shall notify the Company that, interests of Landlord and any Mortgagee in the opinion of Independent CounselLeased Premises and the Land, and Landlord and any such Mortgagee are, by nonpayment the expiration of said thirty (30) day period, furnished such reasonable protection, and reasonable indemnification against any loss, liability, cost or expense related to any such items lien and the lien, pledge or security interest created by this Security Agreement contest thereof as are reasonably satisfactory to Landlord and any part of the Collateral will be materially affected or the Collateral or any part thereof will be subject to imminent loss or forfeiture, the Company shall promptly cause such Lien to be discharged of record, as herein provided. Should the Company fail to cause such Lien to be discharged or to contest the validity or amount thereof, within the period aforesaid, then, the Director may, but shall be under no obligation to, discharge the same either by paying the claim or by procuring the discharge of such Lien by making a deposit or obtaining a bond, which advances if any shall be paid by the Company to the Director on demand, together with interest thereon at the Interest Rate for Advances from the date thereof, in addition to all other payments to be made by the Company pursuant to the Loan Documents and shall be subject to and secured by this Security Agreement as additional indebtedness in accordance with the provisions of Section 2.8 hereofMortgagee.

Appears in 1 contract

Samples: Lease Agreement

Mechanics' and Other Liens. Except for Permitted EncumbrancesThe Borrower shall not, the Company and shall not permit the Lessee to, suffer or permit any mechanics' or other Liens liens to be filed or to exist against the Collateral Project nor any part thereof, nor against the Project Funds or any payments paid or payable under the Loan Documents, by reason of work, labor, services or materials supplied or claimed to have been supplied to, for or in connection with the Collateral or to the Company, the Director or anyone holding the Collateral or any part thereof through or under the CompanyProceeds Account. If any such Lien liens shall at any time be filed, the Company Borrower shall, within thirty (30) 90 days after notice of the filing thereof but subject to the right to contest as herein hereinafter set forth, cause, or shall cause the Lessee to cause, the same to be discharged of record by payment, deposit, bond, order of a court of competent jurisdiction or otherwise. Notwithstanding If the foregoing, Borrower and the Company Lessee shall have the right, at the Company's expense and after written notice to the Director, by appropriate proceeding timely instituted and diligently prosecuted, to contest in good faith the validity or the amount of any such Lien. If, however, the Director shall notify the Company that, in the opinion of Independent Counsel, by nonpayment of any such items the lien, pledge or security interest created by this Security Agreement as to any part of the Collateral will be materially affected or the Collateral or any part thereof will be subject to imminent loss or forfeiture, the Company shall promptly cause such Lien to be discharged of record, as herein provided. Should the Company fail to cause such Lien lien to be discharged discharged, or to contest the validity or amount thereof, within the period aforesaid, then, in addition to any other right or remedy of the Director, the Director may, but shall not be under no obligation obligated to, discharge the same either by paying the claim amount claimed to be due or by procuring the discharge of such Lien lien by making a deposit or obtaining a bond, which advances if any shall be by bonding. Any amount paid by the Company Director shall be reimbursed by the Borrower or the Lessee to the Director on demand, together and if not so reimbursed on demand shall be paid by the Borrower with interest thereon at the Interest Rate for Advances from the date thereof, in addition to all other payments to be made of payment by the Company pursuant Director, which amounts the Borrower agrees to pay. Nothing in this Section shall require the Borrower or the Lessee to pay or discharge any such lien so long as the validity thereof shall be contested in good faith and by appropriate legal proceedings, provided the Borrower or the Lessee shall have delivered to the Director an opinion of counsel, selected by the Borrower or the Lessee and reasonably acceptable to the Director, to the effect that nonpayment of any such lien during the pendency of such contest will not adversely affect the priority of the liens of the Loan Documents and shall be subject to and secured by this Security Agreement as additional indebtedness on the Borrower’s or the Lessee’s right, title or interest in accordance with the provisions of Section 2.8 hereofProject.

Appears in 1 contract

Samples: Loan Agreement (Air Transport Services Group, Inc.)

Mechanics' and Other Liens. Except for Permitted EncumbrancesTenant shall have no authority, express --------------------------- or implied, to create or place any lien or encumbrance of any kind or nature whatsoever upon, or in any manner to bind, the Company interest of Landlord in the Leased Premises or to charge the rentals payable hereunder for any claim in favor of any person dealing with Tenant, including those who may furnish materials or perform labor for any construction or repairs, and each such claim shall affect and each such lien shall attach to, if at all, only the leasehold interest granted to Tenant by this Lease. Tenant covenants and agrees that it will pay or cause to be paid all sums legally due and payable by it on account of any labor performed on the Leased Premises on which any lien is or can be validly and legally asserted against its leasehold interest in the Leased Premises, the Property or the improvements thereon and that it will and does hereby save and hold Landlord harmless from any and all loss, liability, cost or expense based on or arising out of asserted claims or liens against the leasehold estate or against the right, title and interest of the Landlord in the Leased Premises, the Property or the Building under the terms of this Lease. Tenant will not suffer or permit any mechanicsmechanic's lien or liens or any other liens which may be imposed by law affecting Landlord's or its mortgagees' interest in the Leased Premises, the Property or other Liens the Building to be filed placed upon the Leased Premises, the Property or to exist against the Collateral or Building arising out of any payments paid or payable under the Loan Documents, by reason of work, labor, services or materials supplied acting or claimed to have been supplied toaction by Tenant, for or and in connection with case of the Collateral or to the Companyfiling of any such lien, the Director or anyone holding the Collateral or any part thereof through or under the CompanyTenant will promptly pay same. If any such Lien lien shall at any time be filed, the Company shall, within thirty remain in force and effect for twenty (3020) days after written notice thereof from Landlord to Tenant, Landlord shall have the right and privilege of paying and discharging the filing same or any portion thereof but subject without inquiry as to the right validity thereof, and any amounts so paid, including attorneys fees, court costs and other expenses and interest, shall be so much additional rent hereunder due from Tenant to contest as herein set forth, cause the same Landlord and shall be paid to be discharged Landlord immediately on rendition of record by payment, deposit, bond, order of a court of competent jurisdiction or otherwisexxxx therefor. Notwithstanding the foregoing, the Company Tenant shall have the right, at the Company's expense and after written notice to the Director, by appropriate proceeding timely instituted and diligently prosecuted, right to contest any such lien in good faith the validity or the amount of and with all due diligence so long as any such Lien. Ifcontest, howeveror action taken in connection therewith, protects the interest of Landlord and Landlord's mortgagee(s) in the Leased Premises, the Director shall notify Property and the Company thatimprovements thereon, in the opinion of Independent Counseland Landlord and any such mortgagee(s) are, by nonpayment the expiration of said twenty (20) day period, furnished such protection, and indemnification against any loss, liability, cost or expense related to any such items lien and the lien, pledge or security interest created by this Security Agreement contest thereof as are satisfactory to Landlord and any part of the Collateral will be materially affected or the Collateral or any part thereof will be subject to imminent loss or forfeiture, the Company shall promptly cause such Lien to be discharged of record, as herein provided. Should the Company fail to cause such Lien to be discharged or to contest the validity or amount thereof, within the period aforesaid, then, the Director may, but shall be under no obligation to, discharge the same either by paying the claim or by procuring the discharge of such Lien by making a deposit or obtaining a bond, which advances if any shall be paid by the Company to the Director on demand, together with interest thereon at the Interest Rate for Advances from the date thereof, in addition to all other payments to be made by the Company pursuant to the Loan Documents and shall be subject to and secured by this Security Agreement as additional indebtedness in accordance with the provisions of Section 2.8 hereofmortgagee(s).

Appears in 1 contract

Samples: Lease Agreement (Britesmile Inc)

Mechanics' and Other Liens. Except for Permitted Encumbrances(a) Tenant shall have no authority, express or implied, to create or place any lien or encumbrance of any kind or nature whatsoever upon, or any manner to bind, the Company interest of Landlord in the Leased Premises or to charge the Rent payable hereunder by Xxxxxx for any claim in favor of any person dealing with Xxxxxx, including those who may furnish materials or perform labor, construction or repairs for Tenant, and each such claim shall not suffer affect under contract with Tenant and each such lien shall attach to, if at all, only the leasehold interest granted to Tenant pursuant to this Lease. Tenant covenants and agrees that it will pay or permit any mechanics' or other Liens cause to be filed or to exist against the Collateral or any payments paid or all sums legally due and payable under the Loan Documents, by reason it on account of work, labor, services labor performed or materials supplied or claimed to have been supplied to, for or furnished in connection with any work performed on the Collateral Leased Premises under contracts executed by Tenant on which any lien is or to can be validly and legally asserted against its leasehold interest in the CompanyLeased Premises or the Improvements, and that it will save and hold Landlord harmless from any and all loss, liability, cost or expense based on or arising out of asserted claims or liens against the Director leasehold estate of Tenant or anyone holding against the Collateral or any part thereof through right, title and interest of Landlord in the Leased Premises or under the Companyterms of this Lease. Tenant will not permit any mechanic's lien or liens or any other liens which may be imposed by law affecting Landlord's or its Mortgagees' interests in the Leased Premises or the Improvements to be placed upon the Leased Premises or the Improvements arising out of any action or claimed action by Xxxxxx, and in case of the filing of any such lien Tenant will promptly pay or discharge the same. If any such Lien lien shall at any time be filed, the Company shall, within remain in force and effect for thirty (30) days after written notice thereof from Landlord to Tenant, Landlord shall have the right and privilege of paying and discharging the filing same or any portion thereof but subject without inquiry as to the right validity thereof, and any amounts so paid, including expenses and interest, shall be paid by Tenant to contest Landlord, as herein set forthadditional rent hereunder, cause the same to be discharged immediately on rendition of record by payment, deposit, bond, order of a court of competent jurisdiction or otherwisexxxx xxxxxxxx. Notwithstanding the foregoing, the Company Tenant shall have the right, at the Company's expense and after written notice to the Director, by appropriate proceeding timely instituted and diligently prosecuted, right to contest any such lien in good faith the validity or the amount of and with all due diligence so long as any such Lien. Ifcontest, however, or action taken in connection therewith protects the Director shall notify the Company that, interests of Landlord and any Mortgagee in the opinion of Independent CounselLeased Premises and the Land, and Landlord and any such Mortgagee are, by nonpayment the expiration of said thirty (30) day period, furnished such reasonable protection, and reasonable indemnification against any loss, liability, cost or expense related to any such items lien and the lien, pledge or security interest created by this Security Agreement contest thereof as are reasonably satisfactory to Landlord and any part of the Collateral will be materially affected or the Collateral or any part thereof will be subject to imminent loss or forfeiture, the Company shall promptly cause such Lien to be discharged of record, as herein provided. Should the Company fail to cause such Lien to be discharged or to contest the validity or amount thereof, within the period aforesaid, then, the Director may, but shall be under no obligation to, discharge the same either by paying the claim or by procuring the discharge of such Lien by making a deposit or obtaining a bond, which advances if any shall be paid by the Company to the Director on demand, together with interest thereon at the Interest Rate for Advances from the date thereof, in addition to all other payments to be made by the Company pursuant to the Loan Documents and shall be subject to and secured by this Security Agreement as additional indebtedness in accordance with the provisions of Section 2.8 hereofMortgagee.

Appears in 1 contract

Samples: Lease

Mechanics' and Other Liens. Except for Permitted Encumbrances, the Company shall not suffer or permit any mechanics' or other Liens to be filed or to exist against the Collateral or any payments paid or payable under the Loan Documents, by reason of work, labor, services or materials supplied or claimed to have been supplied to, for or in connection with the Collateral or to the Company, the Director (name of local jurisdiction) or anyone holding the Collateral or any part thereof through or under the Company. If any such Lien shall at any time be filed, the Company shall, within thirty (30) days after notice of the filing thereof but subject to the right to contest as herein set forth, cause the same to be discharged of record by payment, deposit, bond, order of a court of competent jurisdiction or otherwise. Notwithstanding the foregoing, the Company shall have the right, at the Company's expense and after written notice to the Director(name of local jurisdiction), by appropriate proceeding timely instituted and diligently prosecuted, to contest in good faith the validity or the amount of any such Lien. If, however, the Director (name of local jurisdiction) shall notify the Company that, in the opinion of Independent Counsel, by nonpayment of any such items the lien, pledge or security interest created by this Security Agreement as to any part of the Collateral will be materially affected or the Collateral or any part thereof will be subject to imminent loss or forfeiture, the Company shall promptly cause such Lien to be discharged of record, as herein provided. Should the Company fail to cause such Lien to be discharged or to contest the validity or amount thereof, within the period aforesaid, then, the Director (name of local jurisdiction) may, but shall be under no obligation to, discharge the same either by paying the claim or by procuring the discharge of such Lien by making a deposit or obtaining a bond, which advances if any shall be paid by the Company to the Director (name of local jurisdiction) on demand, together with interest thereon at the Interest Rate for Advances from the date thereof, in addition to all other payments to be made by the Company pursuant to the Loan Documents and shall be subject to and secured by this Security Agreement as additional indebtedness in accordance with the provisions of Section 2.8 hereof.

Appears in 1 contract

Samples: Security Agreement

Mechanics' and Other Liens. Except for Permitted EncumbrancesTenant shall have no authority, express or implied, to create or place any lien or encumbrance of any kind or nature whatsoever upon, or in any manner to bind, the Company interest of Landlord in the premises or to charge the rentals payable hereunder for any claim in favor of any person dealing with Tenant, including those who may furnish materials or perform labor for any construction or repairs, and each such claim shall not suffer affect and each such lien shall attach to, if at all, only the leasehold interest granted to Tenant by this instrument. Tenant covenants and agrees that it will pay or permit any mechanics' or other Liens cause to be filed or to exist against the Collateral or paid all sums legally due and payable by it on account of any payments paid or payable under the Loan Documents, by reason of work, labor, services labor performed or materials supplied or claimed to have been supplied to, for or furnished in connection with any work performed on the Collateral premises on which any lien is or to can be validly and legally asserted against its leasehold Interest in the Companypremises or the improvements thereon and that it will save and hold Landlord harmless from any and all loss, cost or expense based on or arising out of asserted claims or liens against the Director leasehold estate or anyone holding against the Collateral or any part thereof through right, title and interest of the Landlord in the premises or under the Companyforms of this lease. Tenant will not permit any mechanic's lien or liens or any other liens which may be imposed by law affecting Landlord's or its mortgagees' interest in the premises or any building or other improvement of which the promises are a part to be placed upon the premises or any building or improvement thereon during the term hereof, and in case of the filing of any such lien Tenant will promptly pay same. If any such Lien lien shall at any time be filed, the Company shall, within thirty remain in force and effect for twenty (3020) days after written notice thereof from Landlord to Tenant. Landlord shall have the right and privilege at Landlord's option of paying and discharging the filing same or any portion thereof but subject without inquiry as to the right validity thereof. and any amounts so paid, including expenses and interest, shall be so much additional indebtedness hereunder due from Tenant to contest as herein set forth, cause the same Landlord and shall be repaid to be discharged of record by payment, deposit, bond, order Landlord immediately on rendition of a court of competent jurisdiction or otherwisebill xxxrefor. Notwithstanding the foregoing, the Company Tenant shall have the right, at the Company's expense and after written notice to the Director, by appropriate proceeding timely instituted and diligently prosecuted, to contest any such lien in good faith the validity or the amount of and with all due diligence so long as any such Lien. Ifcontest, howeveror action taken in connection therewith, protects the Director shall notify the Company that, interest of Landlord and Landlord's mortgagee in the opinion of Independent Counselpremises and Landlord and any such mortgagee are, by nonpayment the expiration of said twenty (20) day period, furnished such protection, and indemnification against any loss, cost or expense related to any such items lien and the lien, pledge or security interest created by this Security Agreement contest thereof as are satisfactory to Landlord and any part of the Collateral will be materially affected or the Collateral or any part thereof will be subject to imminent loss or forfeiture, the Company shall promptly cause such Lien to be discharged of record, as herein provided. Should the Company fail to cause such Lien to be discharged or to contest the validity or amount thereof, within the period aforesaid, then, the Director may, but shall be under no obligation to, discharge the same either by paying the claim or by procuring the discharge of such Lien by making a deposit or obtaining a bond, which advances if any shall be paid by the Company to the Director on demand, together with interest thereon at the Interest Rate for Advances from the date thereof, in addition to all other payments to be made by the Company pursuant to the Loan Documents and shall be subject to and secured by this Security Agreement as additional indebtedness in accordance with the provisions of Section 2.8 hereofmortgagee.

Appears in 1 contract

Samples: Lease Agreement (Ameriquest Technologies Inc)

Mechanics' and Other Liens. Except for Permitted EncumbrancesTenant shall have no authority, express or implied, to create or place any lien or encumbrance of any kind or nature whatsoever upon, or in any manner to bind, the Company interest of Landlord in the premises or to charge the rentals payable hereunder for any claim in favor of any person dealing with Tenant, including those who may furnish materials or perform labor for any construction or repairs, and each such claim shall not suffer affect and each such lien shall attach to, if at all, only the leasehold interest granted to Tenant by this instrument. Tenant covenants and agrees that it will pay or permit any mechanics' or other Liens cause to be filed or to exist against the Collateral or paid all sums legally due and payable by it on account of any payments paid or payable under the Loan Documents, by reason of work, labor, services labor performed or materials supplied or claimed to have been supplied to, for or furnished in connection with any work performed on the Collateral premises on which any lien is or to can be validly and legally asserted against its leasehold interest in the Companypremises or the improvements thereon and that it will save and hold Landlord harmless from any and all loss, cost or expense based on or arising out of asserted claims or liens against the Director leasehold estate or anyone holding against the Collateral or any part thereof through right, title and interest of the Landlord in the premises or under the Companyterms of this lease. Tenant will not permit any mechanic’s lien or liens or any other liens which may be imposed by law affecting Landlord’s or its mortgagees’ interest in the premises or any building or other improvement of which the premises are a part to be placed upon the premises or any building or improvement thereon during the term hereof, and in case of the filing of any such lien Tenant will promptly pay same. If any such Lien lien shall at any time be filed, the Company shall, within thirty remain uncontested and in force and effect for twenty (3020) days after written notice thereof from Landlord to Tenant, Landlord shall have the right and privilege at Landlord’s option of paying and discharging the filing same or any portion thereof but subject without inquiry as to the right validity thereof, and any amounts so paid, including expenses and interest, shall be so much additional indebtedness hereunder due from Tenant to contest as herein set forth, cause the same Landlord and shall be repaid to be discharged of record by payment, deposit, bond, order Landlord immediately on rendition of a court of competent jurisdiction or otherwisexxxx therefor. Notwithstanding the foregoing, the Company Tenant shall have the right, at the Company's expense and after written notice to the Director, by appropriate proceeding timely instituted and diligently prosecuted, right to contest any such lien in good faith the validity or the amount of and with all due diligence so long as any such Lien. Ifcontest, howeveror action taken in connection therewith, protects the Director shall notify the Company that, interest of Landlord and Landlord’s mortgagee in the opinion of Independent Counselpremises and Landlord and any such mortgagee are, by nonpayment the expiration of said twenty (20) day period, furnished such protection, and indemnification against any loss, cost or expense related to any such items lien and the lien, pledge or security interest created by this Security Agreement contest thereof as are reasonably satisfactory to Landlord and any part of the Collateral will be materially affected or the Collateral or any part thereof will be subject to imminent loss or forfeiture, the Company shall promptly cause such Lien to be discharged of record, as herein provided. Should the Company fail to cause such Lien to be discharged or to contest the validity or amount thereof, within the period aforesaid, then, the Director may, but shall be under no obligation to, discharge the same either by paying the claim or by procuring the discharge of such Lien by making a deposit or obtaining a bond, which advances if any shall be paid by the Company to the Director on demand, together with interest thereon at the Interest Rate for Advances from the date thereof, in addition to all other payments to be made by the Company pursuant to the Loan Documents and shall be subject to and secured by this Security Agreement as additional indebtedness in accordance with the provisions of Section 2.8 hereofmortgagee.

Appears in 1 contract

Samples: Lease Agreement (Power Solutions International, Inc.)

Mechanics' and Other Liens. Except for Permitted Encumbrances(a) Tenant shall have no authority, express or implied, to create or place any lien or encumbrance of any kind or nature whatsoever upon, or any manner to bind, the Company interest of Landlord in the Leased Premises or to charge the Rent payable hereunder by Tenant for any claim in favor of any person dealing with Tenant, including those who may furnish materials or perform labor, construction or repairs for Tenant, and each such claim shall not suffer affect under contract with Tenant and each such lien shall attach to, if at all, only the leasehold interest granted to Tenant pursuant to this Lease. Tenant covenants and agrees that it will pay or permit any mechanics' or other Liens cause to be filed or to exist against the Collateral or any payments paid or all sums legally due and payable under the Loan Documents, by reason it on account of work, labor, services labor performed or materials supplied or claimed to have been supplied to, for or furnished in connection with any work performed on the Collateral Leased Premises under contracts executed by Tenant on which any lien is or to can be validly and legally asserted against its leasehold interest in the CompanyLeased Premises or the Improvements, and that it will save and hold Landlord harmless from any and all loss, liability, cost or expense based on or arising out of asserted claims or liens against the Director leasehold estate of Tenant or anyone holding against the Collateral or any part thereof through right, title and interest of Landlord in the Leased Premises or under the Companyterms of this Lease. Tenant will not permit any mechanic's lien or liens or any other liens which may be imposed by law affecting Landlord's or its Mortgagees' interests in the Leased Premises or the Improvements to be placed upon the Leased Premises or the Improvements arising out of any action or claimed action by Tenant, and in case of the filing of any such lien Tenant will promptly pay or discharge the same. If any such Lien lien shall at any time be filed, the Company shall, within remain in force and effect for thirty (30) days after written notice thereof from Landlord to Tenant, Landlord shall have the right and privilege of paying and discharging the filing same or any portion thereof but subject without inquiry as to the right validity thereof, and any amounts so paid, including expenses and interest, shall be paid by Tenant to contest Landlord, as herein set forthadditional rent hereunder, cause the same to be discharged immediately on rendition of record by payment, deposit, bond, order of a court of competent jurisdiction or otherwisexxxx therefor. Notwithstanding the foregoing, the Company Tenant shall have the right, at the Company's expense and after written notice to the Director, by appropriate proceeding timely instituted and diligently prosecuted, right to contest any such lien in good faith the validity or the amount of and with all due diligence so long as any such Lien. Ifcontest, however, or action taken in connection therewith protects the Director shall notify the Company that, interests of Landlord and any Mortgagee in the opinion of Independent CounselLeased Premises and the Land, and Landlord and any such Mortgagee are, by nonpayment the expiration of said thirty (30) day period, furnished such reasonable protection, and reasonable indemnification against any loss, liability, cost or expense related to any such items lien and the lien, pledge or security interest created by this Security Agreement contest thereof as are reasonably satisfactory to Landlord and any part of the Collateral will be materially affected or the Collateral or any part thereof will be subject to imminent loss or forfeiture, the Company shall promptly cause such Lien to be discharged of record, as herein provided. Should the Company fail to cause such Lien to be discharged or to contest the validity or amount thereof, within the period aforesaid, then, the Director may, but shall be under no obligation to, discharge the same either by paying the claim or by procuring the discharge of such Lien by making a deposit or obtaining a bond, which advances if any shall be paid by the Company to the Director on demand, together with interest thereon at the Interest Rate for Advances from the date thereof, in addition to all other payments to be made by the Company pursuant to the Loan Documents and shall be subject to and secured by this Security Agreement as additional indebtedness in accordance with the provisions of Section 2.8 hereofMortgagee.

Appears in 1 contract

Samples: Lease

Mechanics' and Other Liens. Except for Permitted Encumbrances, the Company The Borrowers shall not suffer or permit any mechanics' or other Liens liens to be filed or to exist against the Collateral Property or any payments paid or payable under the Loan Documentspart thereof, by reason of work, labor, services services, or materials supplied or claimed to have been supplied to, for or in connection with the Collateral Project, the Property or any part thereof or to the Company, the Director either Borrower or anyone holding the Collateral Property or any part thereof through or under the CompanyBorrowers. If any such Lien liens shall at any time be filed, the Company Borrowers shall, within thirty (30) one hundred twenty days after notice of the filing thereof but subject to the right to contest as herein hereinafter set forth, cause the same to be discharged of record by payment, deposit, bond, order of a court of competent jurisdiction or otherwise. Notwithstanding If the foregoing, the Company Borrowers shall have the right, at the Company's expense and after written notice to the Director, by appropriate proceeding timely instituted and diligently prosecuted, to contest in good faith the validity or the amount of any such Lien. If, however, the Director shall notify the Company that, in the opinion of Independent Counsel, by nonpayment of any such items the lien, pledge or security interest created by this Security Agreement as to any part of the Collateral will be materially affected or the Collateral or any part thereof will be subject to imminent loss or forfeiture, the Company shall promptly cause such Lien to be discharged of record, as herein provided. Should the Company fail to cause such Lien lien to be discharged discharged, or to contest the validity or amount thereof, within the period aforesaid, then, in addition to any other right or remedy of the Director, the Director may, but shall not be under no obligation obligated to, discharge the same either by paying the claim amount claimed to be due or by procuring the discharge of such Lien lien by making a deposit or obtaining a bond, which advances if any shall be by bonding. Any amount paid by the Company Director shall be reimbursed by the Borrowers to the Director on demand, together and if not so reimbursed on demand shall be paid by the Borrowers with interest thereon thereof at the Interest Rate for Advances from the date thereof, in addition to all other payments to be made of payment by the Company pursuant Director, which amounts the Borrowers jointly and severally agree to pay. Nothing in this Section shall require the Borrowers to pay or discharge any such lien so long as the validity thereof shall be contested in good faith and by appropriate legal proceedings, provided that the Borrowers shall have delivered to the Loan Documents Director an opinion of counsel, selected by the Borrowers and shall be subject acceptable to and secured by this Security Agreement as additional indebtedness the Director, to the effect that nonpayment of any such lien during the pendency of such contest will not adversely affect either Borrower’s right, title or interest in accordance with the provisions of Section 2.8 hereofProperty.

Appears in 1 contract

Samples: Loan Agreement (First Solar, Inc.)

Mechanics' and Other Liens. Except for Permitted EncumbrancesTenant shall have no authority, express or implied, to create or place any lien or encumbrance of any kind or nature whatsoever upon, or in any manner to bind, the Company interest of Landlord in the Leased Premises or to change the rentals payable hereunder for any claim in favor of any person dealing with Tenant, including those who may furnish materials or perform labor for any construction or repairs, and each such claim shall not suffer affect and each such lien shall attach to, if at all, only the leasehold interest granted to Tenant by this Lease. Tenant covenants and agrees that it will pay or permit any mechanics' or other Liens cause to be filed or to exist against the Collateral or paid all sums legally due and payable by it on account of any payments paid or payable under the Loan Documents, by reason of work, labor, services labor performed or materials supplied or claimed to have been supplied to, for or furnished in connection with any work performed on the Collateral Leased Premises on which any lien is or to can be validly and legally asserted against its leasehold interest in the CompanyLeased Premises and that it will save and hold Landlord harmless from any and all loss, liability, cost or expense, including reasonable attorneys' fees, based on or arising out of asserted claims or liens against the Director Tenant's leasehold estate or anyone holding against the Collateral right, title and interest of the Landlord in the Leased Premises or any part thereof through or under the CompanyBuilding. If any such Lien lien shall at any time be filed, the Company shall, within thirty remain in force and effect for twenty (3020) days after notice the filing, or Landlord's receipt, of the filing thereof but subject to mechanic's lien statement or notice, Landlord shall have the right to contest as herein set forth, cause pay and discharge the same or any portion thereof without inquiry as to the validity thereof, and any amounts so paid, including expenses and interest, shall be discharged of record payable by payment, deposit, bond, order of a court of competent jurisdiction or otherwiseTenant to Landlord as additional rent hereunder upon demand. Notwithstanding the foregoing, the Company Tenant shall have the right, at the Company's expense and after written notice to the Director, by appropriate proceeding timely instituted and diligently prosecuted, right to contest any such lien in good faith the validity or the amount of and with all due diligence so long as any such Lien. Ifcontest, howeveror action taken in connection therewith, adequately protects the Director shall notify the Company that, interest of Landlord and Landlord's mortgagee in the opinion of Independent CounselLeased Premises, and Landlord and any such mortgagee are, by nonpayment the expiration of said twenty (20) day period, furnished such security against any loss, liability, cost or expense related to any such items lien and the lien, pledge or security interest created by this Security Agreement contest thereof as are satisfactory to Landlord and any part of the Collateral will be materially affected or the Collateral or any part thereof will be subject to imminent loss or forfeiture, the Company shall promptly cause such Lien to be discharged of record, as herein provided. Should the Company fail to cause such Lien to be discharged or to contest the validity or amount thereof, within the period aforesaid, then, the Director may, but shall be under no obligation to, discharge the same either by paying the claim or by procuring the discharge of such Lien by making a deposit or obtaining a bond, which advances if any shall be paid by the Company to the Director on demand, together with interest thereon at the Interest Rate for Advances from the date thereof, in addition to all other payments to be made by the Company pursuant to the Loan Documents and shall be subject to and secured by this Security Agreement as additional indebtedness in accordance with the provisions of Section 2.8 hereofmortgagee.

Appears in 1 contract

Samples: Form Lease Agreement (United Community Bancshares Inc)

Mechanics' and Other Liens. Except for Permitted EncumbrancesTenant shall have no authority, express or implied, to create or place any lien or encumbrance of any kind or nature whatsoever upon, or in any manner to bind, the Company interest of Landlord in the Premises or to charge the rentals payable hereunder for any claim in favor of any person dealing with Tenant, including those who may furnish materials or perform labor for any construction or repairs, and each such claim shall not suffer affect and each such lien shall attach to, if at all, only the leasehold interest granted to Tenant by this Lease. Tenant covenants and agrees that it will pay or permit any mechanics' or other Liens cause to be filed or to exist against the Collateral or paid all sums legally due and payable by it on account of any payments paid or payable under the Loan Documents, by reason of work, labor, services labor performed or materials supplied or claimed to have been supplied to, for or furnished in connection with any work performed on the Collateral Premises on which any lien is or to can be validly and legally asserted against its leasehold interest in the CompanyPremises or the improvements thereon and that it will save and hold Landlord harmless from any and all loss, liability, cost or expense based on or arising out of asserted claims or liens against the Director leasehold estate or anyone holding against the Collateral or any part thereof through right, title and interest of the Landlord in the Premises or under the Companyterms of this Lease. Tenant will not permit any mechanic’s lien or liens or any other liens which may be imposed by law affecting Landlord’s or its Mortgagees’ interest in the Premises or the Building to be placed upon the Premises or the Building arising out of any action or claimed action by Tenant, and in case of the filing of any such lien Tenant will promptly pay same. If any such Lien lien shall at any time be filed, the Company shall, within thirty remain in force and effect for twenty (3020) days after written notice thereof from Landlord to Tenant, Landlord shall have the right and privilege of paying and discharging the filing same or any portion thereof but subject without inquiry as to the right validity thereof, and any amounts so paid, including expenses and interest, shall be so much additional rent hereunder due from Tenant to contest as herein set forth, cause the same Landlord and shall be paid to be discharged Landlord immediately on rendition of record by payment, deposit, bond, order of a court of competent jurisdiction or otherwisexxxx therefore. Notwithstanding the foregoing, the Company Tenant shall have the right, at the Company's expense and after written notice to the Director, by appropriate proceeding timely instituted and diligently prosecuted, right to contest any such lien in good faith the validity or the amount of and with all due diligence so long as any such Lien. Ifcontest, howeveror action taken in connection therewith, protects the Director shall notify the Company that, interest of Landlord and Landlord’s Mortgagee in the opinion of Independent CounselPremises, and Landlord and any such Mortgagee are, by nonpayment the expiration of said twenty (20) day period, furnished such protection, and indemnification against any loss, liability, cost or expense related to any such items lien and the lien, pledge or security interest created by this Security Agreement contest thereof as are satisfactory to Landlord and any part of the Collateral will be materially affected or the Collateral or any part thereof will be subject to imminent loss or forfeiture, the Company shall promptly cause such Lien to be discharged of record, as herein provided. Should the Company fail to cause such Lien to be discharged or to contest the validity or amount thereof, within the period aforesaid, then, the Director may, but shall be under no obligation to, discharge the same either by paying the claim or by procuring the discharge of such Lien by making a deposit or obtaining a bond, which advances if any shall be paid by the Company to the Director on demand, together with interest thereon at the Interest Rate for Advances from the date thereof, in addition to all other payments to be made by the Company pursuant to the Loan Documents and shall be subject to and secured by this Security Agreement as additional indebtedness in accordance with the provisions of Section 2.8 hereofMortgagee.

Appears in 1 contract

Samples: Lease Agreement (Mountains West Exploration Inc)

Mechanics' and Other Liens. Except for Permitted Encumbrancesas otherwise set forth herein, the Company Borrower shall not suffer or permit any mechanics' or other Liens liens to be filed or to exist against the Collateral or any payments paid or payable under the Loan Documents, Mortgaged Property by reason of work, labor, services or materials supplied or claimed to have been supplied to, for or in connection with the Collateral Mortgaged Property or to the Company, the Director Borrower or anyone holding the Collateral Mortgaged Property or any part thereof through or under the Company. If Borrower, which is likely to cause a Material Adverse Effect; provided, however, that if any such Lien lien shall at any time be filed, the Company Borrower shall, within thirty (30) days after notice of the filing thereof but subject to the right to of contest as herein set forthforth herein, cause the same to be discharged of record by payment, deposit, bond, order of a court of competent jurisdiction or otherwise. Notwithstanding anything to the foregoingcontrary contained herein, the Company Borrower shall have the right, at the Company's its own expense and after prior written notice to the DirectorMortgagee, by appropriate proceeding timely proceedings duly instituted and diligently prosecuted, to contest in good faith the validity validity, applicability or the amount of any such Lien. Iflien if Borrower establishes an escrow or other security acceptable to Mortgagee (or, howeverat its option, Mortgagee may establish a reserve against loans otherwise available to Borrower or its affiliates) in an amount estimated by Mortgagee to be adequate to cover the Director shall notify the Company that, in the opinion of Independent Counsel, by nonpayment of any such items the lien, pledge or security interest created by this Security Agreement as to any part payment of the Collateral will be materially affected amount being contested with interest, costs and penalties and an additional sum to cover possible interest, costs and penalties; and, if the amount of such escrow or the Collateral other security (or reserve) is insufficient to pay any part thereof will be subject to imminent loss or forfeiture, the Company shall promptly cause such Lien amount adjudged by a court of competent jurisdiction to be discharged of recorddue, as herein provided. Should the Company fail to cause with all interest, costs and penalties thereon, Borrower shall pay such Lien to be discharged or to contest the validity or amount thereof, within the period aforesaid, then, the Director may, but shall be under deficiency no obligation to, discharge the same either by paying the claim or by procuring the discharge of such Lien by making a deposit or obtaining a bond, which advances if any shall be paid by the Company to the Director on demand, together with interest thereon at the Interest Rate for Advances from later than the date thereof, in addition to all other payments to be made by the Company pursuant to the Loan Documents and shall be subject to and secured by this Security Agreement as additional indebtedness in accordance with the provisions of Section 2.8 hereofsuch judgment becomes final.

Appears in 1 contract

Samples: Fee and Leasehold Mortgage (CVD Equipment Corp)

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