Common use of Title and Encumbrances Clause in Contracts

Title and Encumbrances. Except as allowed by this Agreement, Borrower owns all of its assets free of liens or encumbrances, subject only to: liens in favor of Comerica Bank or Bank, except for, (a) liens for taxes not delinquent or being contested in good faith, liens created in connection with worker’s disability compensation, unemployment insurance and social security, or to secure the performance of bids, tenders or contracts, leases, statutory obligations, surety and appeal bonds, and (b) other obligations of like nature made in the ordinary course of business, and liens or charges incidental to the conduct of Borrower’s business or the ownership of its property and assets, including purchase money security interests in connection with the borrowing of money or the obtaining of an advance or credit to acquire the asset(s) covered thereby.