Common use of Taxes, Assessments and Other Charges Clause in Contracts

Taxes, Assessments and Other Charges. The Borrower shall pay or cause to be paid all taxes, assessments and charges of any kind whatsoever that may at any time be lawfully assessed or levied against or with respect to the Project (including ad valorem, sales and excise taxes, assessments and charges upon the Borrower’s interest in the Project), all utility and other charges incurred in the operation, maintenance, use, occupancy and upkeep of the Project and all assessments and charges lawfully made by any governmental body for public improvements that may be secured by a lien on the Project. Notwithstanding the provisions of this Section 5.13, if no Event of Default exists, the Borrower at its own expense may contest in good faith any such tax, assessment or charge, provided that, during the period of such contest or appeal therefrom, the failure to have paid such tax, assessment or charge does not adversely affect the lien of the Mortgage, adversely affect the excludability of interest on the Bonds for federal income tax purposes, cause any event of default under the Indenture or any of the Loan Documents, endanger such lien on the Project or any portion thereof or subject the Project to loss or forfeiture, in which event the Borrower shall promptly take such action with respect thereto as shall be necessary and satisfactory to the Significant Bondholder, if any.

Taxes, Assessments and Other Charges. The Borrower shall pay or cause to be paid all taxes, assessments and charges of any kind whatsoever that may at any time be lawfully assessed or levied against or with respect to the Project (including ad valorem, sales and excise taxes, assessments and charges upon the Borrower’s interest in the Project), all utility and other charges incurred in the operation, maintenance, use, occupancy and upkeep of the Project and all assessments and charges lawfully made by any governmental body for public improvements that may be secured by a lien on the Project. Notwithstanding the provisions of this Section 5.13, if no Event of Default exists, the Borrower at its own expense may contest in good faith any such tax, assessment or charge, provided that, during the period of such contest or appeal therefrom, the failure to have paid such tax, assessment or charge does not adversely affect the lien of the Mortgage, adversely affect the excludability of interest on the Bonds for federal income tax purposes, cause any event of default under the Indenture or any of the Loan Documents, endanger such lien on the Project or any portion thereof or subject the Project to loss or forfeiture, in which event the Borrower shall promptly take such action with respect thereto as shall be necessary and satisfactory to the Significant Bondholder, if any.any.‌