Prohibited Drug Law Activities. Notwithstanding any other provision herein or in the Note or any Related Document regarding the use, occupancy or leasing of all or any portion of real property owned, occupied or used by Borrower (collectively, the "Premises") and without limiting the generality of any of the negative covenants of Borrower herein, Borrower shall not use or occupy, or permit the use or occupancy of, the Premises (or any portion thereof), or enter into any lease, license, sublease, occupancy agreement or other agreement (collectively, "Lease") involving or providing for the use or occupancy of the Premises (or any portion thereof), in any manner that would be a violation of any federal, state or local law relating to the use, sale, possession, cultivation or distribution of any controlled substances, including without limitation any activity (whether for commercial or personal purposes) regulated under the Compassionate Use Act of 1996 or any other California law relating to the medicinal use or distribution of marijuana (collectively, "Prohibited Drug Law Activities") or entering into a Lease with any Person engaged or intending to engage in any Prohibited Drug Law Activities. Any Lease involving or providing for the use or occupancy of the Premises entered into by Borrower during the term of the Loan shall expressly prohibit the tenant or other occupant of the Premises (or any portion thereof) from engaging or permitting others to engage in any Prohibited Drug Law Activities. In the event that Borrower becomes aware that any tenant, occupant or other Person is or may be using, occupying or leasing the Premises (or any portion thereof) with the intent to engage or is engaged in any Prohibited Drug Law Activities, Borrower shall terminate its agreement with such tenant, occupant or other Person and take all actions permitted under applicable law to discontinue such activities in or on the Premises and shall immediately notify Lender regarding the Prohibited Drug Law Activities and Borrower's actions to terminate such agreement and the Prohibited Drug Law Activities. Borrower shall keep Lender advised of each action it takes or plans to take in compliance with the requirements of this section. Compliance with this section is a material consideration and inducement to Lender in its agreement to extend the Loan and other financial accommodations to Borrower hereunder. Any failure of Borrower to comply with the requirements under this section shall constitute a non-curable Event of Default upon written notice by Lender to Borrower thereof and, notwithstanding any provision herein or in the Note or the Related Documents with respect to the right to cure an Event of Default, upon the occurrence of any breach, default or non-compliance of or under this section, Lender shall have the right to immediately exercise any and all remedies to which it may be entitled hereunder, under the Note or any of the Related Documents or otherwise under law. In addition and not by way of limitation, Borrower hereby agrees to indemnify, defend and hold Lender harmless from and against any loss, claim, damage or liability arising from or related to Borrower's breach or violation of the covenants set forth herein. Borrower shall, within ten (10) business days following a request from Lender, provide Lender with a written statement setting forth its efforts to comply with the provisions of this section and stating whether, to Borrower's knowledge, any Prohibited Drug Law Activities are or may be on-going or have occurred in, on or around the Premises.
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Prohibited Drug Law Activities. Notwithstanding any other provision herein or in the Note or any Related Document regarding the use, occupancy or leasing of all or any portion of real property owned, occupied or used by Borrower (collectively, the "Premises") and without limiting the generality of any of the negative covenants of Borrower herein, Borrower shall not use or occupy, or permit the use or occupancy of, the Premises (or any portion thereof), or enter into any lease, license, sublease, occupancy agreement or other agreement (collectively, "Lease") with any Person involving or providing for relating to the use or occupancy of the Premises Property (or any portion thereof), in any manner that ) which would be a violation of any federal, state or local law and/or federal laws relating to the use, sale, possession, cultivation or and/or distribution of any controlled substances, including without limitation any activity Person engaged or intending to engage in activities (whether for commercial or personal purposes) regulated under the Compassionate Use Act of 1996 any California law or any other California applicable law relating to the medicinal use or and/or distribution of marijuana (collectively, "otherwise known as the Compassionate Use Act of 1996) 51 Construction Loan Agreement (“Prohibited Drug Law Activities") or entering into a Lease with any Person engaged or intending to engage in any Prohibited Drug Law Activities”). Any Lease Every lease, license, sublease, occupancy agreement and/or other agreement involving or providing for relating to the use or occupancy of the Premises Property entered into by Borrower during the term of the Loan shall expressly prohibit the tenant or other occupant of the Premises Property (or any portion thereof) from engaging or permitting others to engage in any Prohibited Drug Law Activities. In the event that Borrower becomes aware from any source that any tenant, occupant tenant or other Person is or may be using, occupying or and/or leasing the Premises Property (or any portion thereof) with the intent to engage or engage, and/or is engaged engaged, in any Prohibited Drug Law Activities, Borrower shall terminate its agreement with such tenant, occupant or other Person and take all actions permitted under applicable law to discontinue such activities in or on the Premises Property, and shall immediately notify Lender of Borrower’s notice regarding the said Prohibited Drug Law Activities and Borrower's ’s actions to terminate such agreement and the Prohibited Drug Law Activitiesactivities. Borrower shall keep Lender advised of each action it takes or plans to take in compliance with the requirements of this sectionSection 7.8. Compliance with the covenants in this section Section 7.8 is a material consideration and inducement to Lender in its agreement to extend make the Loan to Borrower, and other financial accommodations to Borrower hereunder. Any any failure of Borrower to comply with the foregoing requirements under this section shall constitute a non-curable an Event of Default upon written notice by Lender to Borrower thereof and, notwithstanding any provision herein or in the Note or the Related Documents with respect to the right to cure an Event of Default, upon the occurrence of any breach, default or non-compliance of or under this section, Lender shall have the right to immediately exercise any and all remedies to which it may be entitled hereunder, under the Note or any of the Related Documents or otherwise under law. In addition addition, and not by way of limitation, Borrower hereby agrees to indemnify, defend and hold Lender harmless from and against any loss, claim, damage or liability arising from or related to Borrower's ’s breach or violation of said covenants, including without limitation any seizure and forfeiture to the covenants set forth hereinUnited States without compensation to Lender, free and clear of Lender’s first lien security interest in and to the Property, or any action taken by the state or federal government to accomplish same. Borrower shall, within ten (10) business days Business Days following a request from Lender, provide Lender with a written statement setting forth its efforts to comply with the provisions of this section Section 7.8 and stating whether, whether to Borrower's knowledge, ’s knowledge any Prohibited Drug Law Activities are or may be on-going or and/or have occurred in, on or around the PremisesProperty. Notwithstanding anything to the contrary contained in this Agreement, Borrower shall be personally liable to Lender under the Loan Documents for any and all liabilities, costs, expenses (including reasonable attorneys’ fees and expenses), claims, losses or damages incurred by Lender (including, without limitation, any impairment of Lender’s security for the Loan) with respect to Borrower’s breach of, or failure to comply with, the representations, warranties and covenants set forth in this Section 7.8 relating to Prohibited Drug Law Activities, regardless of whether such breach or failure results in the forfeiture, seizure, loss of all or any portion of the Property or Lender’s security interest therein.
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Samples: Construction Loan Agreement
Prohibited Drug Law Activities. Notwithstanding any other provision herein or in the Note or any Related Document regarding the use, occupancy or leasing of all or any portion of real property owned, occupied or used by Borrower (collectively, the "Premises") and without limiting the generality of any of the negative covenants of Borrower herein, Borrower shall not use or occupy, or permit the use or occupancy of, the Premises (or any portion thereof), or enter into any lease, license, sublease, occupancy agreement or other agreement (collectively, "Lease") with any Person involving or providing for relating to the use or occupancy of the Premises Property (or any portion thereof), in any manner that ) which would be a violation of any federal, state or local law and/or federal laws relating to the use, sale, possession, cultivation or and/or distribution of any controlled substances, including without limitation any activity Person engaged or intending to engage in activities (whether for commercial or personal purposes) regulated under the Compassionate Use Act of 1996 any California law or any other California applicable law relating to the medicinal use or and/or distribution of marijuana (collectively, "otherwise known as the Compassionate Use Act of 1996) (“Prohibited Drug Law Activities") or entering into a Lease with any Person engaged or intending to engage in any Prohibited Drug Law Activities”). Any Lease Every lease, license, sublease, occupancy agreement and/or other agreement involving or providing for relating to the use or occupancy of the Premises Property entered into by Borrower during the term of the Loan shall expressly prohibit the tenant or other occupant of the Premises Property (or any portion thereof) from engaging or permitting others to engage in any Prohibited Drug Law Activities. In the event that Borrower becomes aware from any source that any tenant, occupant tenant or other Person is or may be using, occupying or and/or leasing the Premises Property (or any portion thereof) with the intent to engage or engage, and/or is engaged engaged, in any Prohibited Drug Law Activities, Borrower shall terminate its agreement with such tenant, occupant or other Person and take all actions permitted under applicable law to discontinue such activities in or on the Premises Property, and shall immediately notify Lender of Borrower’s notice regarding the said Prohibited Drug Law Activities and Borrower's ’s actions to terminate such agreement and the Prohibited Drug Law Activitiesactivities. Borrower shall keep Lender advised of each action it takes or plans to take in compliance with the requirements of this sectionSection 7.8. Compliance with the covenants in this section Section 7.8 is a material consideration and inducement to Lender in its agreement to extend make the Loan to Borrower, and other financial accommodations to Borrower hereunder. Any any failure of Borrower to comply with the foregoing requirements under this section shall constitute a non-curable an Event of Default upon written notice by Lender to Borrower thereof and, notwithstanding any provision herein or in the Note or the Related Documents with respect to the right to cure an Event of Default, upon the occurrence of any breach, default or non-compliance of or under this section, Lender shall have the right to immediately exercise any and all remedies to which it may be entitled hereunder, under the Note or any of the Related Documents or otherwise under law. In addition addition, and not by way of limitation, Borrower hereby agrees to indemnify, defend and hold Lender harmless from and against any loss, claim, damage or liability arising from or related to Borrower's ’s breach or violation of said covenants, including without limitation any seizure and forfeiture to the covenants set forth hereinUnited States without compensation to Lender, free and clear of Lender’s first lien security interest in and to the Property, or any action taken by the state or federal government to accomplish same. Borrower shall, within ten (10) business days Business Days following a request from Lender, provide Lender with a written statement setting forth its efforts to comply with the provisions of this section Section 7.8 and stating whether, whether to Borrower's knowledge, ’s knowledge any Prohibited Drug Law Activities are or may be on-going or and/or have occurred in, on or around the PremisesProperty. Notwithstanding anything to the contrary contained in this Agreement, Borrower shall be personally liable to Lender under the Loan Documents for any and all liabilities, costs, expenses (including reasonable attorneys’ fees and expenses), claims, losses or damages incurred by Lender (including, without limitation, any impairment of Lender’s security for the Loan) with respect to Borrower’s breach of, or failure to comply with, the representations, warranties and covenants set forth in this Section 7.8 relating to Prohibited Drug Law Activities, regardless of whether such breach or failure results in the forfeiture, seizure, loss of all or any portion of the Property or Lender’s security interest therein.
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Prohibited Drug Law Activities. Notwithstanding any other provision herein or in the Note or any Related Document regarding the use, occupancy or leasing of all or any portion of real property owned, occupied or used by Borrower (collectively, the "Premises") and without limiting the generality of any of the negative covenants of Borrower herein, Borrower shall not use or occupy, or permit the use or occupancy of, the Premises (or any portion thereof), or enter into any lease, license, sublease, occupancy agreement or other agreement (collectively, "Lease") with any Person involving or providing for relating to the use or occupancy of the Premises Property (or any portion thereof), in any manner that ) which would be a violation of any federal, state or local law and/or federal laws relating to the use, sale, possession, cultivation or and/or distribution of any controlled substances, including without limitation any activity Person engaged or intending to engage in activities (whether for commercial or personal purposes) regulated under the Compassionate Use Act of 1996 any California law or any other California applicable law relating to the medicinal use or and/or distribution of marijuana (collectively, "otherwise known as the Compassionate Use Act of 1996) (“Prohibited Drug Law Activities") or entering into a Lease with any Person engaged or intending to engage in any Prohibited Drug Law Activities”). Any Lease Every lease, license, sublease, occupancy agreement and/or other agreement involving or providing for relating to the use or occupancy of the Premises Property entered into by Borrower during the term of the Loan shall expressly prohibit the tenant or other occupant of the Premises Property (or any portion thereof) from engaging or permitting others to engage in any Prohibited Drug Law Activities. In the event that Borrower becomes aware from any source that any tenant, occupant tenant or other Person is or may be using, occupying or and/or leasing the Premises Property (or any portion thereof) with the intent to engage or engage, and/or is engaged engaged, in any Prohibited Drug Law Activities, Borrower shall terminate its agreement with such tenant, occupant or other Person and take all actions permitted under applicable law to discontinue such activities in or on the Premises Property, and shall immediately notify Lender of Borrower’s notice regarding the said Prohibited Drug Law Activities and Borrower's ’s actions to terminate such agreement and the Prohibited Drug Law Activitiesactivities. Borrower shall keep Lender advised of each action it takes or plans to take in compliance with the requirements of this sectionSection 7.8. Compliance with the covenants in this section Section 7.8 is a material consideration and inducement to Lender in its agreement to extend make the Loan to Borrower, and other financial accommodations to Borrower hereunder. Any any failure of Borrower to comply with the foregoing requirements under this section shall constitute a non-curable an Event of Default upon written notice by Lender to Borrower thereof and, notwithstanding any provision herein or in the Note or the Related Documents with respect to the right to cure an Event of Default, upon the occurrence of any breach, default or non-compliance of or under this section, Lender shall have the right to immediately exercise any and all remedies to which it may be entitled hereunder, under the Note or any of the Related Documents or otherwise under law. In addition addition, and not by way of limitation, Borrower hereby agrees to indemnify, defend and hold Lender harmless from and against any loss, claim, damage or liability arising from or related to Borrower's ’s breach or violation of said covenants, including without limitation any seizure and forfeiture to the covenants set forth hereinUnited States without compensation to Lender, free and clear of Lender’s first lien security interest in and to the Property, or any action taken by the state or federal government to accomplish same. Borrower shall, within ten (10) business days Business Days following a request from Lender, provide Lender with a written statement setting forth its efforts to comply with the provisions of this section Section 7.8 and stating whether, whether to Borrower's knowledge, ’s knowledge any Prohibited Drug Law Activities are or may be on-going or and/or have occurred in, on or around the PremisesProperty. 52 Construction Loan Agreement Notwithstanding anything to the contrary contained in this Agreement, Borrower shall be personally liable to Lender under the Loan Documents for any and all liabilities, costs, expenses (including reasonable attorneys’ fees and expenses), claims, losses or damages incurred by Lender (including, without limitation, any impairment of Lender’s security for the Loan) with respect to Borrower’s breach of, or failure to comply with, the representations, warranties and covenants set forth in this Section 7.8 relating to Prohibited Drug Law Activities, regardless of whether such breach or failure results in the forfeiture, seizure, loss of all or any portion of the Property or Lender’s security interest therein.
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Prohibited Drug Law Activities. Notwithstanding any other provision herein or in the Note or any Related Document regarding the use, occupancy or leasing of all or any portion of real property owned, occupied or used by Borrower (collectively, the "Premises") and without limiting the generality of any of the negative covenants of Borrower herein, Borrower shall not use or occupy, or permit the use or occupancy of, the Premises (or any portion thereof), or enter into any lease, license, sublease, occupancy agreement or other agreement (collectively, "Lease") involving or providing for the use or occupancy of the Premises (or any portion thereof), in any manner that would be a violation of any federal, state or local law relating to the use, sale, possession, cultivation or distribution of any controlled substances, including without limitation any activity (whether for commercial or personal purposes) regulated under the Compassionate Use Act of 1996 or any other California law relating to the medicinal use or distribution of marijuana (collectively, "Prohibited Drug Law Activities") or entering into a Lease with any Person engaged or intending to engage in any Prohibited Drug Law Activities. Any Lease involving or providing for the use or occupancy of the Premises entered into by Borrower during the term of the Loan shall expressly prohibit the tenant or other occupant of the Premises (or any portion thereof) from engaging or permitting others to engage in any Prohibited Drug Law Activities. In the event that Borrower becomes aware that any tenant, occupant or other Person is or may be using, occupying or leasing the Premises (or any portion thereof) with the intent to engage or is engaged in any Prohibited Drug Law Activities, Borrower shall terminate its agreement with such tenant, occupant or other Person and take all actions permitted under applicable law to discontinue such activities in or on the Premises and shall immediately notify Lender regarding the Prohibited Drug Law Activities and Borrower's ’s actions to terminate such agreement and the Prohibited Drug Law Activities. Borrower shall keep Lender advised of each action it takes or plans to take in compliance with the requirements of this section. BUSINESS LOAN AGREEMENT Compliance with this section is a material consideration and inducement to Lender in its agreement to extend the Loan and other financial accommodations to Borrower hereunder. Any failure of Borrower to comply with the requirements under this section shall constitute a non-curable Event of Default upon written notice by Lender to Borrower thereof and, notwithstanding any provision herein or in the Note or the Related Documents with respect to the right to cure an Event of Default, upon the occurrence of any breach, default or non-compliance of or under this section, Lender shall have the right to immediately exercise any and all remedies to which it may be entitled hereunder, under the Note or any of the Related Documents or otherwise under law. In addition and not by way of limitation, Borrower hereby agrees to indemnify, defend and hold Lender harmless from and against any loss, claim, damage or liability arising from or related to Borrower's breach ’s beach or violation of the covenants set forth herein. Borrower shall, within ten (10) business days following a request from Lender, provide Lender with a written statement setting forth its efforts to comply with the provisions of this section and stating whether, to Borrower's ’s knowledge, any Prohibited Drug Law Activities are or may be on-going or have occurred in, on or around the Premises.
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