Obsolete Property Sample Clauses
The Obsolete Property clause defines how property that is no longer useful, functional, or required under an agreement is to be handled. Typically, this clause outlines procedures for identifying such property, notifying relevant parties, and determining whether the property should be disposed of, returned, or replaced. For example, equipment that becomes outdated due to technological advancements may be classified as obsolete and subject to removal or replacement. The core function of this clause is to ensure that obsolete assets do not create unnecessary costs or liabilities, and to provide a clear process for their management and disposition.
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Obsolete Property. Mortgagor shall have the right, at any time and from time to time, unless an Event of Default shall have occurred and be continuing, without any release from or consent by Mortgagee:
(a) to sell or dispose of, free from the lien of this Mortgage, any Tangible Personal Property which, in its reasonable opinion, may have become obsolete or unfit for use or which is no longer necessary in the conduct of its businesses or the operation of the Trust Estate, and no purchaser of any such property shall be bound to inquire into any question affecting Mortgagor's right to sell or otherwise dispose of the same free from the lien of this Mortgage;
(b) to alter, repair, replace, change the location or position of and add to any Tangible Personal Property; provided, however, that no change shall be made in the location of any such property subject to the lien of this Mortgage which would in any respect impair the security of this Mortgage upon such property; or
(c) to renew, extend, surrender, terminate, modify or amend any leases of Tangible Personal Property, when, in Mortgagor's reasonable opinion, it is prudent to do so. Mortgagor shall retain any net cash proceeds received from the sale or disposition of any Tangible Personal Property under Subsection (a) of this Section 2.2, in the business of operating the Casino Hotel. Mortgagee shall be under no responsibility or duty with respect to the exercise of the rights of Mortgagor under this Section 2.2 or the application of the proceeds of any sale or disposition of any Tangible Personal Property. Mortgagee shall, from time to time, promptly execute any written instrument in form satisfactory to Mortgagee to confirm the propriety of any action taken by Mortgagor under this Section 2.2, upon receipt by Mortgagee of a Mortgagor Request requesting the same, together with a Mortgagor's Certificate stating that the action so to be confirmed was duly taken in conformity with this Section 2.2, and that the execution of such written instrument is appropriate to confirm the propriety of such action under this Section 2.2; provided, that Mortgagee shall have no liability thereunder and all costs and expenses (including, without limitation, reasonable attorneys' fees and disbursements) shall be paid by Mortgagor.
Obsolete Property. Mortgagor shall have the rights granted to it with respect to the disposition of certain Tangible Personal Property secured hereby pursuant to Section 4.3 of the Trust Indenture (but subject to all restrictions pertaining thereto), the terms of which are incorporated herein by reference. Mortgagee shall, from time to time, promptly execute any written instrument in form satisfactory to Mortgagee to confirm the propriety of any action taken by Mortgagor under this Section 2.02, upon receipt by Mortgagee of a Mortgagor Request requesting the same, together with an Officers' Certificate stating that the action so to be confirmed was duly taken in conformity with this Section 2.02, and that the execution of such written instrument is appropriate to confirm the propriety of such action under this Section 2.02; provided, that Mortgagee shall have no liability thereunder and all costs and expenses (including, without limitation, reasonable attorneys' fees and disbursements) shall be paid by Mortgagor.
Obsolete Property the sale, transfer or other disposition of any tangible personal property that, in the reasonable judgment of Parent or any of its Subsidiaries, has become uneconomic, obsolete or worn out;