Common use of REO Properties Clause in Contracts

REO Properties. (a) Each REO Property constitutes real property owned by the Seller or an Affiliate thereof, none of which is used in the operation of Seller’s business. (b) Except as set forth in Section 4.06(b)(i) of the Seller Disclosure Schedule, to the Knowledge of Seller, (i) all buildings on the REO Properties will be insured, at all times prior to the Closing, against loss by fire, flood (if necessary under applicable law), hazards of extended coverage and such other hazards as are commonly insured against in a property of such type and (ii) there have been no acts or omissions that would impair the coverage of any such insurance. Except as set forth in Section 4.06(b)(ii) of the Seller Disclosure Schedule, all premiums on any such insurance policies have been paid and Seller has not received a notice of termination or cancellation for such insurance. (c) Each REO Property consists of a fee estate in real property, and is improved as a commercial property (or a residence or an unimproved lot to the extent required by the SBA Loan Authorization or Origination Commitment Letter). (d) To the Knowledge of Seller, as of the date hereof, with respect to each Transferred Interest, there are no mechanics’ or similar liens or claims which have been filed for work, labor or material against any REO Property relating to such Transferred Interest. (e) To the Knowledge of Seller, except as set forth in Section 4.06(e) of the Seller Disclosure Schedule, as of the date hereof, with respect to each Transferred Interest (i) the REO Properties are free of damage that would reasonably be expected to materially and adversely affect the value of such properties or the purpose for which they are used, and (ii) there are no proceedings pending for the total or partial condemnation or taking by eminent domain thereof.

REO Properties. (a) Each REO Property constitutes real property owned by the Applicable Seller or an Affiliate thereof, none of which is used in the operation of any Applicable Seller’s business. (b) Except as set forth in Section 4.06(b)(i) of the Seller Disclosure Schedule, to the Knowledge of SellerSellers, (i) all buildings on the REO Properties will be insured, at all times prior to the Applicable Closing, against loss by fire, flood (if necessary under applicable law), hazards of extended coverage and such other hazards as are commonly insured against in a property of such type and (ii) there have been no acts or omissions that would impair the coverage of any such insurance. Except as set forth in Section 4.06(b)(ii) of the Seller Disclosure Schedule, all premiums on any such insurance policies have been paid and no Seller has not received a notice of termination or cancellation for such insurance. (c) Each REO Property consists of a fee estate in real property, and is improved as a commercial property (or a residence or an unimproved lot to the extent required by the SBA Loan Authorization or Origination Commitment Letter). (d) To the Knowledge of SellerSellers, as of the date hereofOriginal Execution Date, with respect to each Transferred Interest, there are no mechanics’ or similar liens or claims which have been filed for work, labor or material against any REO Property relating to such Transferred Interest. (e) To the Knowledge of SellerSellers, except as set forth in Section 4.06(e) of the Seller Disclosure Schedule, as of the date hereofOriginal Execution Date, with respect to each Transferred Interest (i) the REO Properties are free of damage that would reasonably be expected to materially and adversely affect the value of such properties or the purpose for which they are used, and (ii) there are no proceedings pending for the total or partial condemnation or taking by eminent domain thereof.