Common use of Taxes and Other Governmental Charges Clause in Contracts

Taxes and Other Governmental Charges. Before the same become delinquent, pay and discharge or cause to be paid and discharged all taxes, assessments and governmental charges or levies lawfully imposed upon the Borrower or its income or profits or upon the Facility, all utility and other governmental charges incurred in the ownership, operation, maintenance, use, occupancy and upkeep of the Facility. However, the Borrower may contest in good faith any such taxes, assessments and other charges and, in such event, may permit the taxes, assessments or other charges so contested to remain unpaid during any period, including appeals, when the Borrower is in good faith contesting the same, so long as (a) adequate cash reserves have been established in an amount sufficient to pay any such taxes, assessments or other charges, accrued interest thereon and potential penalties or other costs relating thereto, or other adequate provision for the payment thereof shall have been made, (b) enforcement of the contested tax, assessment or other charge is effectively stayed for the entire duration of such contest, and (c) any tax, assessment or other charge determined to be due, together with any interest or penalties thereon, is promptly paid after resolution of such contest.