Warranties and Covenants of Company as to Title. The Company shall take such actions as are necessary to cause title to the Project to vest in the Issuer subject to this Lease and the Permitted Encumbrances. The Company further covenants to pay all costs and expenses which are necessary to defend the title of the Issuer to the Project, and will do no act that will impair such title, except as may be expressly permitted by the Bond Resolution, this Lease and the other Bond Documents.
Warranties and Covenants of Company as to Title. The Company will, as principal and not as agent of the Issuer, provide the additional renovation of the Leased Improvements and acquire and install the Leased Equipment and cause any mechanics’ and materialmen’s liens relating to the Project to be discharged and will take such further actions as are necessary to cause good and merchantable title to the Project to be vested in the Issuer (subject only to Permitted Encumbrances). The Company further covenants to do no act that will impair the title of the Issuer to the Project. Notwithstanding the foregoing, the Company may, contest in good faith any such mechanics’ and materialmen’s liens relating to the Project, provided that it posts bond or takes such other action as may be required to prevent title to the Project from being lost. In the case of liens relating to Project Costs that constitute Project Costs attributable to the Company’s fault, negligence, or directed change orders, the cost on contesting such liens shall be paid by the Company. In the case of liens relating to Project Costs that constitute Project Costs, but which are not attributable to the Company’s fault, negligence or directed change order, then, the same shall be paid by the Issuer. [End of Article III]
