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

Taxes, Liens and Other Charges. (a) Unless otherwise paid to Beneficiary as provided in Section 2.5, Affiliated Guarantor and/or Operating Lessee as applicable shall pay all real estate and other taxes and assessments which may be payable, assessed, levied, imposed upon or become a lien on or against any portion of the Property (all of the foregoing items are collectively referred to as the “Imposition(s)”). The Impositions shall be paid not later than the dates on which the particular Imposition would become delinquent and Affiliated Guarantor shall produce to Beneficiary receipts of the imposing authority, or other evidence reasonably satisfactory to Beneficiary, evidencing the payment of the Imposition in full. If Affiliated Guarantor and/or Operating Lessee as applicable elects by appropriate legal action to contest any Imposition, Affiliated Guarantor shall first deposit cash (or other security approved by Beneficiary such as a bond or letter of credit) with Beneficiary as a reserve in an amount which Beneficiary determines is sufficient to pay the Imposition plus all fines, interest, penalties and costs which may become due pending the determination of the contest. If Affiliated Guarantor deposits this sum or alternative security with Beneficiary, Affiliated Guarantor shall not be required to pay the Imposition provided that enforcement or collection of the Imposition, or the sale or forfeiture of, the Property is prevented during such contest and such contest is prosecuted with due diligence and continuity. Upon termination of any proceeding or contest and any appeal thereof, Affiliated Guarantor shall pay the amount of the Imposition as finally determined in the proceeding or contest. Provided that there is not then an Event of Default (as defined in Section 11.1), the monies or alternative security which have been deposited with Beneficiary pursuant to this Section shall be applied toward such payment and the excess, if any, shall be returned to Affiliated Guarantor.

Appears in 1 contract

Samples: Management Agreement (Strategic Hotels & Resorts, Inc)

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Taxes, Liens and Other Charges. (a) Unless otherwise paid Subject to Beneficiary as provided Mortgagor’s right to duly contest the same in accordance with this Section 2.52.3(a), Affiliated Guarantor and/or Operating Lessee as applicable Mortgagor shall pay pay, on or before the due date thereof, all real estate taxes, levies, license fees, permit fees and all other taxes charges (in each case whether general or special, ordinary or extraordinary, or foreseen or unforeseen) of every character whatsoever (including all penalties and assessments interest thereon) now or hereafter levied, assessed, confirmed or imposed on, or in respect of, or which may be payable, assessed, levied, imposed upon or become a lien on upon the Collateral, or against any portion part thereof, or any estate, right or interest therein, or upon the rents, issues, income or profits thereof, and shall submit to Lender such evidence of the Property (all of the foregoing items are collectively referred to as the “Imposition(s)”). The Impositions shall be paid not later than the dates on which the particular Imposition would become delinquent due and Affiliated Guarantor shall produce to Beneficiary receipts of the imposing authority, or other evidence reasonably satisfactory to Beneficiary, evidencing the punctual payment of all such taxes, assessments and other fees and charges as may be required by law. Mortgagor shall have the Imposition in full. If Affiliated Guarantor and/or Operating Lessee as applicable elects right before they become past due to contest or object to the amount or validity of any such tax, assessment, fee or charge by appropriate legal action proceedings, but this shall not be deemed or construed in any way as relieving, modifying or extending Mortgagor’s covenant to pay any such tax, assessment, fee or charge at the time and in the manner provided herein, unless Mortgagor has given prior written notice to Lender of Mortgagor’s intent to so contest or object, and unless (i) Mortgagor shall demonstrate to Lender’s reasonable satisfaction that the legal proceedings shall conclusively operate to prevent the sale of the Collateral, or any Impositionpart thereof, Affiliated Guarantor to satisfy such tax, assessment, fee or charge prior to final determination of such proceedings; and (ii) if required by Lender, Mortgagor shall first deposit cash (or other security approved by Beneficiary such as furnish a good and sufficient bond or letter of credit) with Beneficiary surety as a reserve requested by and satisfactory to Lender in an amount which Beneficiary determines is sufficient to fully pay the Imposition plus all finescontested amount, interestwith penalties, penalties interest and costs which may become due pending other charges if Mortgagor should be unsuccessful in such contest; and (iii) Mortgagor shall diligently pursue such contest. Mortgagor’s right to reimbursement from any amounts paid to Lender in escrow for taxes shall be subject to the determination terms and conditions of the contest. If Affiliated Guarantor deposits this sum or alternative security Tax and Insurance Escrow and Security Agreement with Beneficiary, Affiliated Guarantor shall not be required to pay the Imposition provided that enforcement or collection Lender of the Imposition, or the sale or forfeiture of, the Property is prevented during such contest and such contest is prosecuted with due diligence and continuity. Upon termination of any proceeding or contest and any appeal thereof, Affiliated Guarantor shall pay the amount of the Imposition as finally determined in the proceeding or contest. Provided that there is not then an Event of Default (as defined in Section 11.1), the monies or alternative security which have been deposited with Beneficiary pursuant to this Section shall be applied toward such payment and the excesseven date herewith, if any, shall be returned to Affiliated Guarantorsuch agreement is in effect.

Appears in 1 contract

Samples: Security Agreement and Fixture Filing (Adcare Health Systems Inc)

Taxes, Liens and Other Charges. (a) Unless otherwise paid Subject to Beneficiary as provided Section 2.04 hereof, Mortgagor shall pay, on or before the delinquency date thereof, all taxes, levies, license fees, permit fees and all other charges (in Section 2.5each case whether general or special, Affiliated Guarantor and/or Operating Lessee as applicable shall pay ordinary or extraordinary, or foreseen or unforeseen) of every character whatsoever (including all real estate penalties and other taxes and assessments interest thereon) now or hereafter levied, assessed, confirmed or imposed on, or in respect of, or which may be payable, assessed, levied, imposed upon or become a lien on upon the Collateral, or against any portion part thereof, or any estate, right or interest therein, or upon the rents, issues, income or profits thereof, and shall submit to Mortgagee such evidence of the Property (due and punctual payment of all of such taxes, assessments and other fees and charges as may be required by law. Mortgagor shall have the foregoing items are collectively referred to as the “Imposition(s)”). The Impositions shall be paid not later than the dates on which the particular Imposition would right before they become delinquent and Affiliated Guarantor shall produce to Beneficiary receipts contest or object to the amount or validity of the imposing authorityany such tax, assessment, fee or other evidence reasonably satisfactory to Beneficiary, evidencing the payment of the Imposition in full. If Affiliated Guarantor and/or Operating Lessee as applicable elects charge by appropriate legal action to contest any Impositionproceedings, Affiliated Guarantor shall first deposit cash (or other security approved by Beneficiary such as a bond or letter of credit) with Beneficiary as a reserve in an amount which Beneficiary determines is sufficient to pay the Imposition plus all fines, interest, penalties and costs which may become due pending the determination of the contest. If Affiliated Guarantor deposits but this sum or alternative security with Beneficiary, Affiliated Guarantor shall not be required deemed or construed in any way as relieving, modifying or extending Mortgagor's covenant to pay any such tax, assessment, fee or charge at the Imposition time and in the manner provided herein, unless Mortgagor has given prior written notice to Mortgagee of Mortgagor's intent to so contest or object, and unless (i) Mortgagor shall demonstrate to Mortgagee's satisfaction that enforcement or collection the legal proceedings shall conclusively operate to prevent the sale of the ImpositionCollateral, or the sale any part thereof, to satisfy such tax, assessment, fee or forfeiture ofcharge prior to final determination of such proceedings; and (ii) Mortgagor shall diligently pursue such contest; provided, however, that upon request Mortgagor shall deposit with Mortgagee all amounts required by Section 2.04 including any penalties, interests or charges in connection with such contested taxes; and provided further that Mortgagee shall be entitled to pay in full any and all contested taxes where a lien has been filed against the Property is prevented during such contest and such contest is prosecuted in connection with due diligence and continuity. Upon termination of any proceeding or contest and any appeal thereof, Affiliated Guarantor shall pay the amount of the Imposition as finally determined in the proceeding or contest. Provided that there is not then an Event of Default (as defined in Section 11.1), the monies or alternative security which have been deposited with Beneficiary pursuant to this Section shall be applied toward such payment and the excess, if any, shall be returned to Affiliated Guarantorsame.

Appears in 1 contract

Samples: Mortgage and Security Agreement (Emeritus Corp\wa\)

Taxes, Liens and Other Charges. Borrower shall pay, on or before the final due date thereof, all (a) Unless otherwise paid to Beneficiary as provided in Section 2.5taxes, Affiliated Guarantor and/or Operating Lessee as applicable shall pay all real estate assessments, and other taxes and assessments which may be payablecharges of every character whatsoever now or hereafter levied on, assessed, leviedplaced or made against the Secured Obligations, imposed upon or become a lien on or against any portion of the Property (all of the foregoing items are collectively referred to as the “Imposition(s)”). The Impositions shall be paid not later than the dates on which the particular Imposition would become delinquent and Affiliated Guarantor shall produce to Beneficiary receipts of the imposing authorityPremises, this Mortgage, or any other evidence reasonably satisfactory Loan Document, or any interest of Lender in the Secured Obligations, the Premises or the Note Documents (collectively, the "Impositions"); (b) premiums on policies of insurance now or hereafter covering the Premises, and any and all other insurance policies now or hereafter collaterally pledged to Beneficiary, evidencing the payment of the Imposition in full. If Affiliated Guarantor and/or Operating Lessee as applicable elects by appropriate legal action to contest any Imposition, Affiliated Guarantor shall first deposit cash Lender; (c) ground rentals or other security approved by Beneficiary such as a bond or letter of credit) with Beneficiary as a reserve in an amount which Beneficiary determines is sufficient to pay the Imposition plus all fines, interest, penalties and costs which may become due pending the determination of the contest. If Affiliated Guarantor deposits this sum or alternative security with Beneficiary, Affiliated Guarantor shall not be required to pay the Imposition provided that enforcement or collection of the Imposition, or the sale or forfeiture of, the Property is prevented during such contest and such contest is prosecuted with due diligence and continuity. Upon termination of any proceeding or contest and any appeal thereof, Affiliated Guarantor shall pay the amount of the Imposition as finally determined in the proceeding or contest. Provided that there is not then an Event of Default (as defined in Section 11.1), the monies or alternative security which have been deposited with Beneficiary pursuant to this Section shall be applied toward such payment and the excesslease rentals, if any, payable by Borrower; (d) utility charges, whether public or private; and (e) penalties and interest on any of the foregoing. Borrower will promptly pay any tax arising out of the passage of any law, order, rule or regulation, subsequent to the date hereof, in any manner changing or modifying the laws now in force governing the taxation of deeds to secure debt or security agreements, or debts secured thereby, or the manner of collection thereof. Borrower shall promptly deliver to Lender upon demand receipts showing timely payment in full of all of the above items. Borrower may, to the extent and in the manner permitted by law, (i) pay the Impositions in installments if such installment payment would not create or permit the filing of a lien against the Premises and (ii) contest the payment of any Impositions in good faith and by appropriate proceedings on the following conditions: (A) any such contests shall be returned prosecuted diligently and in a manner not prejudicial to Affiliated Guarantorthe rights, liens and security title of Lender, (B) Borrower shall deposit funds with Lender or obtain a bond in form and substance and with an issuing company satisfactory to Lender in an amount sufficient to cover any amounts which may be owing in the event the contest may be unsuccessful, (C) no contest may be conducted and no payment may be delayed beyond the date on which the Premises, or any portion thereof, could be sold for nonpayment and (D) Lender may pay over to the taxing authority entitled thereto any or all of the funds at any time when, in the opinion of Lender's counsel, the entitlement of such authority to such funds is established. Furthermore, if any mechanic's or materialmen's claim of lien or any involuntary lien is filed against the Premises, Borrower will have thirty (30) days from the date of the filing of such lien to discharge the claim or lien of record by payment, deposit in court or bond, or otherwise contest such claim or lien, provided any such action or contest will preclude enforcement of such claim or lien.

Appears in 1 contract

Samples: Mortgage and Security Agreement (American International Petroleum Corp /Nv/)

Taxes, Liens and Other Charges. (a) Unless otherwise paid to Beneficiary as provided in Section 2.5, Affiliated Guarantor and/or Operating Lessee as applicable Borrower shall pay all real estate Taxes and other taxes and assessments which may be payable, assessed, levied, Other Charges now or hereafter levied or assessed or imposed upon or become a lien on or against any portion of the Property (all of the foregoing items are collectively referred to or any part thereof as the “Imposition(s)”). The Impositions same become due and payable; provided, however, that notwithstanding anything to the contrary contained in this Agreement or the other Loan Documents, Borrower’s obligation to directly pay Taxes and Other Charges shall be paid not later than suspended for so long as no Event of Default has occurred and is continuing and Borrower complies with the dates on which the particular Imposition would become delinquent terms and Affiliated Guarantor provisions of Section 6.2 hereof. Borrower shall produce furnish to Beneficiary Lender receipts of the imposing authority, or other evidence reasonably satisfactory to Beneficiary, evidencing for the payment of the Imposition Taxes and the Other Charges prior to the date the same shall become delinquent; provided, however, that so long as no Event of Default has occurred and is continuing, Borrower is not required to furnish such receipts for payment of Taxes and Other Charges in fullthe event that such Taxes and Other Charges have been paid or were to have been paid by Lender pursuant to Section 6.2 hereof Subject to Borrower’s right to contest such Taxes and Other Charges as hereinafter provided, Borrower shall not permit or suffer and shall promptly discharge any lien for Taxes or Other Charges against the Property (other than liens for Taxes or Other Charges not yet due or payable). If Affiliated Guarantor and/or Operating Lessee as applicable elects After prior notice to Lender, Borrower, at its own expense, and notwithstanding anything to the contrary contained in this Agreement or the other Loan Documents, may contest by appropriate legal action to contest proceeding, conducted in good faith and with due diligence, the amount or validity of any ImpositionTaxes, Affiliated Guarantor Liens or Other Charges, provided that (a) no Default or Event of Default has occurred and remains uncured; (b) such proceeding shall first be permitted under and be conducted in accordance with all applicable statutes, laws and ordinances; (c) neither the Property nor any part thereof or interest therein will be in danger of being sold, forfeited, terminated, canceled or lost; (d) Borrower shall promptly upon final determination thereof pay the amount of any such Taxes, Liens or Other Charges, together with all costs, interest and penalties which may be payable in connection therewith; (e) such proceeding shall suspend the collection of Taxes, Liens or Other Charges from the Property; (f) Borrower shall deposit cash (with Lender cash, or other security as may be approved by Beneficiary such as a bond or letter of credit) with Beneficiary as a reserve Lender, in an amount which Beneficiary determines is sufficient equal to pay the Imposition plus all fines, interest, penalties and costs which may become due pending the determination one hundred twenty percent (120%) of the contest. If Affiliated Guarantor deposits this sum or alternative security with Beneficiarycontested amount (provided, Affiliated Guarantor that Borrower shall not be required to deposit any such cash or post security with respect to claims which in the aggregate do not exceed $125,000.00 ), to insure the payment of any such Taxes, Liens or Other Charges, together with all interest and penalties thereon, and (g) such contest by Borrower is not in violation of Leases or Operating Agreements. Lender may pay over any such cash or other security held by Lender to the Imposition provided that enforcement or collection claimant entitled thereto at any time when, in the judgment of the Imposition, or the sale or forfeiture ofLender, the Property entitlement of such claimant is prevented during such contest and such contest is prosecuted with due diligence and continuity. Upon termination of any proceeding or contest and any appeal thereof, Affiliated Guarantor shall pay the amount of the Imposition as finally determined in the proceeding or contest. Provided that there is not then an Event of Default (as defined in Section 11.1), the monies or alternative security which have been deposited with Beneficiary pursuant to this Section shall be applied toward such payment and the excess, if any, shall be returned to Affiliated Guarantorestablished.

Appears in 1 contract

Samples: Loan Agreement (Interstate Hotels & Resorts Inc)

Taxes, Liens and Other Charges. (a) Unless otherwise To pay all and singular the taxes, assessments, obligations and encumbrances of every nature now on the Premises or that hereafter may be levied, assessed or imposed thereon when due and payable according to law and before they become delinquent; and if the same not be promptly paid the Mortgagee may, at any time either before or after delinquency, pay the same without waiving or affecting its right to Beneficiary as provided in Section 2.5foreclose this Mortgage or an other right hereunder and all sums so paid shall become a part of he Secured Indebtedness and, Affiliated Guarantor and/or Operating Lessee as applicable at the option of the Mortgagee, shall bear interest from the date of each such payment at the maximum rate allowed by law. Upon notification from the Mortgagee, the Mortgagor shall pay all real estate to the Mortgagee, together with and in addition to the payments of principal and interest payable under the terms of the Note secured hereby, on installment paying dates in the Note, until said Note is fully paid or until notification from the Mortgagee to the contrary, an amount reasonably sufficient (as estimated by the Mortgagee) to provide the Mortgagee with funds to pay said taxes, assessments, insurance premiums, rents and other taxes and assessments which may be payable, assessed, levied, imposed upon or become a lien charges next due so that the Mortgagee will have sufficient funds on or against any portion of the Property (all of the foregoing items are collectively referred to as the “Imposition(s)”). The Impositions shall be paid not later than the dates on which the particular Imposition would become delinquent and Affiliated Guarantor shall produce to Beneficiary receipts of the imposing authority, or other evidence reasonably satisfactory to Beneficiary, evidencing the payment of the Imposition in full. If Affiliated Guarantor and/or Operating Lessee as applicable elects by appropriate legal action to contest any Imposition, Affiliated Guarantor shall first deposit cash (or other security approved by Beneficiary such as a bond or letter of credit) with Beneficiary as a reserve in an amount which Beneficiary determines is sufficient hand to pay the Imposition plus all finessame thirty (30) days before the date upon which they become past due. In no event shall the Mortgagee be liable for any interest on any amount paid to it as herein required, interestand the money so received shall be held in a separate account pending payment or application thereof as herein provided. As required by the Mortgagee, penalties and costs the Mortgagor shall furnish to the Mortgagee, at least thirty (30) days before the date on which may same will become due pending the determination past due, an official statement of the contest. If Affiliated Guarantor deposits this sum or alternative security with Beneficiaryamount of said taxes, Affiliated Guarantor assessments, insurance premiums and rents next due, and the Mortgagee shall not be required ay said charges to pay the Imposition provided that enforcement or collection of the Imposition, or the sale or forfeiture of, the Property is prevented during such contest and such contest is prosecuted with due diligence and continuity. Upon termination of any proceeding or contest and any appeal thereof, Affiliated Guarantor shall pay the amount of the Imposition then unused credit therefor as finally determined in the proceeding or contestand when they become severally due and payable. Provided that there is not then an Event of Default (as defined in Section 11.1), the monies or alternative security which have been deposited with Beneficiary pursuant to this Section An official receipt therefor shall be applied toward conclusive evidence of such payment and the excess, if any, shall be returned to Affiliated Guarantorvalidity of such charges.

Appears in 1 contract

Samples: Mortgage and Security Agreement (Inspired Builders, Inc.)

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Taxes, Liens and Other Charges. (a) Unless otherwise sums sufficient to pay the same shall have been fully paid to Beneficiary Mortgagee as provided in Section 2.51.06 hereof, Affiliated Guarantor and/or Operating Lessee as applicable Mortgagor shall pay or cause to be paid all real estate and other taxes taxes, assessments, water and assessments sewer charges, vault and other license or permit fees, levies, fines, penalties, interest, impositions, and other similar claims, general and special, public and private, of any kind whatsoever which may be payable, assessed, levied, confirmed, imposed upon or arise out of or become due and payable out of, or become a lien on or against any portion of the Property or any part thereof (all of the foregoing items are foregoing, together with utility and refuse removal charges, being hereinafter collectively referred to as the "Imposition(s)”). The Impositions shall be paid ") not later than thirty (30) days before the dates on which the particular Imposition such Impositions would become delinquent and Affiliated Guarantor delinquent. Not later than the date when any Impositions would become delinquent, Mortgagor shall produce to Beneficiary receipts of the imposing authority, or other Mortgagee evidence reasonably satisfactory to Beneficiary, Mortgagee evidencing the payment of the Imposition thereof in full. If Affiliated Guarantor and/or Operating Lessee as applicable elects Mortgagor shall in good faith, and by appropriate proper legal action to action, contest any ImpositionImpositions, Affiliated Guarantor and shall first deposit have deposited cash with Mortgagee (or other security approved by Beneficiary such as a bond or letter of creditMortgagee may direct) with Beneficiary as a reserve in an amount which Beneficiary determines is sufficient to pay for the Imposition payment thereof plus all fines, interest, penalties and costs which may become due pending the determination of the such contest. If Affiliated Guarantor deposits this sum or alternative security with Beneficiary, Affiliated Guarantor in such amount as Mortgagee may require, then Mortgagor shall not be required to pay the Imposition provided that same during the maintenance of said deposit and as long as such contest operates to prevent enforcement or collection of the Impositionsuch Impositions against, or the sale or forfeiture of, the Property is prevented during such contest for non-payment thereof, and such contest is prosecuted with due diligence and continuity, and shall not have been terminated or discontinued adversely to Mortgagor. Upon termination of any such proceeding or contest and any appeal thereofcontest, Affiliated Guarantor Mortgagor shall pay the amount of the Imposition such Impositions or part thereof as finally determined in the such proceeding or contest. Provided that there is not then an Event of Default (as defined in Section 11.1)However, the if monies or alternative security which have been deposited with Beneficiary Mortgagee pursuant to this Section 1.03, said funds shall be applied toward such payment and the excess, if any, shall be returned to Affiliated GuarantorMortgagor.

Appears in 1 contract

Samples: Mortgage and Security Agreement (Overseas Partners LTD)

Taxes, Liens and Other Charges. (a) Unless otherwise To pay all and singular the taxes, assessments, obligations and encumbrances of every nature now on the Premises or that hereafter may be levied, assessed or imposed thereon when due and payable according to law and before they become delinquent; and if the same not be promptly paid Mortgagee may, at any time either before or after delinquency, pay the same without waiving or affecting its right to Beneficiary as provided in Section 2.5foreclose this Mortgage or any other right hereunder and all sums so paid shall become a part of the Secured Indebtedness and at the option of Mortgagee, Affiliated Guarantor and/or Operating Lessee as applicable shall bear interest from the date of each such payment at the maximum rate allowed by law. Upon notification from Mortgagee, Mortgagor shall pay all real estate to Mortgagee, together with and in addition to the payments of principal and interest payable under the terms of the Note secured hereby, on installment paying dates in the Note, until said Note is fully paid or until notification from Mortgagee to the contrary, an amount reasonably sufficient (as estimated by Mortgagee) to provide Mortgagee with funds to pay said taxes, assessments, insurance premiums, rents and other taxes and assessments which may be payable, assessed, levied, imposed upon or become a lien charges next due so that Mortgagee will have sufficient funds on or against any portion of the Property (all of the foregoing items are collectively referred to as the “Imposition(s)”). The Impositions shall be paid not later than the dates on which the particular Imposition would become delinquent and Affiliated Guarantor shall produce to Beneficiary receipts of the imposing authority, or other evidence reasonably satisfactory to Beneficiary, evidencing the payment of the Imposition in full. If Affiliated Guarantor and/or Operating Lessee as applicable elects by appropriate legal action to contest any Imposition, Affiliated Guarantor shall first deposit cash (or other security approved by Beneficiary such as a bond or letter of credit) with Beneficiary as a reserve in an amount which Beneficiary determines is sufficient hand to pay the Imposition plus all finessame thirty (30) days before the date upon which they become past due. In no event shall Mortgagee be liable for any interest on any amount paid to it as herein required, interestand the money so received shall be held in a separate account, penalties and costs pending payment or application thereof as herein provided. As required by Mortgagee, Mortgagor shall furnish to Mortgagee, at least thirty (30) days before the date on which may same will become due pending the determination past due, an official statement of the contest. If Affiliated Guarantor deposits this sum or alternative security with Beneficiaryamount of said taxes, Affiliated Guarantor shall not be required to pay the Imposition provided that enforcement or collection of the Impositionassessments, or the sale or forfeiture ofinsurance premiums and rents next due, the Property is prevented during such contest and such contest is prosecuted with due diligence and continuity. Upon termination of any proceeding or contest and any appeal thereof, Affiliated Guarantor Mortgagee shall pay said charges to the amount of the Imposition then unused credit therefor as finally determined in the proceeding or contestand when they become severally due and payable. Provided that there is not then an Event of Default (as defined in Section 11.1), the monies or alternative security which have been deposited with Beneficiary pursuant to this Section An official receipt therefor shall be applied toward conclusive evidence of such payment and the excess, if any, shall be returned to Affiliated Guarantor.validity of such charges. 2 3 2.04

Appears in 1 contract

Samples: Cucos Inc

Taxes, Liens and Other Charges. (a) Unless otherwise paid to Beneficiary Mortgagee as provided in Section 2.52.05 hereof, Affiliated Guarantor and/or Operating Lessee as applicable Mortgagor shall pay (or shall cause to be paid) all real estate and other taxes and assessments which may be payable, assessed, levied, imposed upon or become a lien on or against any portion of the Property (all of the foregoing items are collectively referred to as the “Imposition(s)”). The Impositions shall be paid not later than the dates on which the particular Imposition would become delinquent and Affiliated Guarantor Mortgagor shall produce to Beneficiary Mortgagee receipts of the imposing authority, or other evidence reasonably satisfactory to BeneficiaryMortgagee, evidencing the payment of the Imposition in full, except with regards to Impositions paid by Mortgagee pursuant to Section 2.05 hereof. If Affiliated Guarantor and/or Operating Lessee as applicable Mortgagor elects by appropriate legal action to contest any Imposition, Affiliated Guarantor shall first deposit cash (or other security approved by Beneficiary such as a bond or letter of credit) with Beneficiary as a reserve in an amount which Beneficiary determines is sufficient to pay the Imposition plus all fines, interest, penalties and costs which may become due pending the determination of the contest. If Affiliated Guarantor deposits this sum or alternative security with Beneficiary, Affiliated Guarantor Mortgagor shall not be required to pay the Imposition provided that the contest operates to prevent enforcement or collection of the Imposition, or the sale or forfeiture of, the Property is prevented during such contest Property, and such contest is prosecuted with due diligence and continuity. Upon termination of any proceeding or contest and any appeal thereofcontest, Affiliated Guarantor Mortgagor shall pay the amount of the Imposition as finally determined in the proceeding or contest. Provided In addition, Mortgagor covenants and agrees to pay (or cause to be paid) all water and sewer charges, vault and other license or permit fees, liens, fines, penalties, interest and other similar public and private claims which may be payable, assessed, levied, imposed upon or become a lien on or against any portion of the Property (“Other Charges”) on or before the date such charges, fees, liens, fines, penalties, interest and claims become delinquent and upon the request of Mortgagee, Mortgagor shall produce to Mortgagee receipts of the imposing authority, or other evidence reasonably satisfactory to Mortgagee, evidencing the payment of such amount in full. If Mortgagor elects by appropriate legal action to contest any Other Charges, Mortgagor shall not be required to pay such Other Charges provided that there is not then an Event the contest operates to prevent enforcement or collection of Default (as defined in Section 11.1)such Other Charges, or the sale or forfeiture of, the monies Property, and is prosecuted with due diligence and continuity. Upon termination of any proceeding or alternative security which have been deposited with Beneficiary pursuant to this Section contest, Mortgagor shall be applied toward such payment and pay the excess, if any, shall be returned to Affiliated Guarantoramount of the Other Charges as finally determined in the proceeding or contest.

Appears in 1 contract

Samples: Mortgage, Security Agreement (Taubman Centers Inc)

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