Common use of Recourse Limitations Clause in Contracts

Recourse Limitations. Subject to the provisions of this Section 21(q), the personal liability of Borrowers to pay the Indebtedness shall be limited to Borrowers’ interest in the Collateral and in any other collateral given to Lender. The provisions of this Section shall not, however, (1) constitute a waiver, release or impairment of any obligation evidenced or secured by any of the Loan Documents; (2) impair the right of Lender to name Borrowers as parties defendant in any action or suit for foreclosure and sale under the Pledge Agreement; (3) affect the validity or enforceability of any guaranty made in connection with the Loan or any of the rights and remedies of Lender thereunder; (4) impair the right of Lender to obtain the appointment of a receiver; (5) constitute a prohibition against Lender to seek a deficiency judgment against Borrowers solely in order to fully realize on any security given by Borrowers in connection with the Loan or to commence any other appropriate action or proceeding solely in order for Lender to exercise its remedies against such security (provided Lender shall not seek any personal recourse against Borrowers by virtue of such deficiency other than Borrowers’ interest in such security); or (6) constitute a waiver of the right of Lender to enforce the liability and obligation of Borrowers, by money judgment or otherwise, to the extent of any loss, damage (excluding consequential damages), cost, expense, liability, claim or other obligation incurred by Lender (including attorneys’ fees and costs reasonably incurred) arising out of or in connection with the following: (i) fraud or intentional misrepresentation by Borrowers or Mortgage Borrower in connection with the Loan; (ii) the willful misconduct of Borrowers or Mortgage Borrower; (iii) the breach of any covenant or indemnification provision in the Environmental Indemnity or in the Security Instrument by Mortgage Borrower concerning environmental laws, hazardous substances and asbestos and any indemnification therein; (iv) the intentional removal or disposal of any portion of the Collateral after an Event of Default; (v) the failure to maintain the Policies in full force and effect pursuant to the terms and provisions of Section 8; or (vi) any physical damage to the Property caused by intentional waste committed by Borrowers, Mortgage Borrower or any Affiliate thereof.