Borrower and Operating Clause Samples

The 'Borrower and Operating' clause defines the roles, responsibilities, and obligations of the borrower in relation to the operation of the financed asset or business. Typically, this clause outlines requirements for how the borrower must manage, maintain, and operate the asset, such as adhering to certain standards, maintaining insurance, or providing regular operational reports to the lender. Its core function is to ensure that the asset or business remains in good condition and continues to generate value, thereby protecting the lender’s security and investment.
Borrower and Operating. Lessee (i) shall observe and perform the obligations imposed upon the lessor under the Major Leases in a commercially reasonable manner; (ii) shall enforce the terms, covenants and conditions contained in the Major Leases upon the part of the lessee thereunder to be observed or performed in a commercially reasonable manner; provided, however, neither Borrower nor Operating Lessee shall terminate or accept a surrender of a Major Lease, without Lender’s prior approval (unless such termination is in connection with an event of default by the Tenant under such Major Lease); (iii) shall not collect any of the Rents more than one (1) month in advance (other than security deposits); (iv) shall not execute any assignment of lessor’s interest in the Major Leases or the Rents (except as contemplated by the Loan Documents); (v) shall not alter, modify or change any Major Lease so as to change the amount of or payment date for rent, change the expiration date, grant any option for additional space or term, materially reduce the obligations of the lessee or increase the obligations of lessor, without Lender’s prior approval, which approval shall not be unreasonably withheld or delayed; and (vi) shall hold all security deposits under all Major Leases in accordance with Legal Requirements. Upon request, Borrower shall furnish or shall cause Operating Lessee to furnish Lender with executed copies of all Major Leases.
View SourceView Similar (2)
Borrower and Operating. Lessee (i) shall observe and perform the obligations imposed upon the lessor under the Leases in a commercially reasonable manner; (ii) shall enforce the terms, covenants and conditions contained in the Leases upon the part of the Tenants thereunder to be observed or performed in a commercially reasonable manner, provided, however, neither Borrower nor Operating Lessee shall terminate or accept a surrender of any Lease without Lender’s prior approval except as permitted by the express terms of this Agreement; (iii) shall not collect any of the Rents more than one (1) month in advance (other than security deposits); (iv) shall not execute any assignment of lessor’s interest in the Leases or the Rents (except as contemplated by the Loan Documents); and (v) shall not alter, modify or change any Major Lease without Lender’s prior consent, which consent shall be subject to the Approval Standard. Upon request, Borrower or Operating Lessee shall furnish Lender with executed copies of all Leases. Borrower or Operating Lessee shall promptly send copies to Lender of all written notices of material default which Borrower or Operating Lessee shall receive under the Leases.
View Source
Borrower and Operating. Lessee shall not cause, shall prohibit any other Person within the Control of Borrower or Operating Lessee from causing, and shall use prudent, commercially reasonable efforts to prohibit other Persons (including tenants) from (1) causing any spill, discharge or release, or the use, storage, generation, manufacture, installation, or disposal, of any Hazardous Materials at, upon, under, within or about a Project or the transportation of any Hazardous Materials to or from a Project (except for cleaning and other products used in connection with routine maintenance or repair of the Project in full compliance with Environmental Laws), (2) installing any underground storage tanks at a Project, or (3) conducting any activity that requires a permit or other authorization under Environmental Laws.
View Source
Borrower and Operating. Lessee each hereby represents with respect to itself and Borrower hereby represents as to Principal that any amendment or restatement of any organizational document has been accomplished in accordance with, and was permitted by, the relevant provisions of such document prior to its amendment or restatement from time to time.
View Source
Borrower and Operating. Lessee Owner shall keep, and shall cause the Mortgage Loan Parties to keep, on a calendar year basis, in accordance with GAAP and the Uniform System of Accounts, as applicable, or any other accounting method, consistently applied, proper and accurate books, records and accounts reflecting all of the financial affairs of Borrower, Operating Lessee Owner and the Mortgage Loan Parties and all items of income and expense and any services, Equipment or furnishings provided in connection with the operation of the Property and the ownership of the Collateral, whether such income or expense is realized by Borrower, Operating Lessee Owner, the Mortgage Loan Parties Manager or any Affiliate of any of the foregoing. Lender shall have the right from time to time during normal business hours upon reasonable notice to examine such books, records and accounts at the office of Borrower or other Person maintaining them, and to make such copies or extracts thereof as Lender shall reasonably require. After and during the continuance of an Event of Default, Borrower shall pay any actual reasonable costs incurred by Lender to examine such books, records and accounts, as Lender shall determine to be reasonably necessary or appropriate in the protection of Lender’s interest.
View Source
Borrower and Operating. Lessee Owner shall furnish (or cause the Mortgage Loan Parties to furnish) to Lender, within ten (10) Business Days after request, such further detailed information with respect to the ownership of the Collateral or the operation of the Property and the financial affairs of Borrower, Borrower Representative, Operating Lessee Owner, the Mortgage Loan Parties or Manager as may be reasonably requested by Lender or any applicable Rating Agency. 61
View Source
Borrower and Operating. Lessee shall cause the Property to be operated by Manager in accordance with the Management Agreement, and Borrower and Operating Lessee shall: (i) promptly perform and/or observe (or cause to be performed and/or observed) all of the covenants and agreements required to be performed and observed by it under the Management Agreement (including, without limitation, the requirements of any PIP) and do all things necessary to preserve and to keep unimpaired its material rights thereunder; (ii) promptly notify Administrative Agent of any material default or notice of non-compliance received or delivered in connection with the Management Agreement; (iii) promptly deliver to Administrative Agent a copy of each financial statement, business plan, capital expenditures plan and property improvement plan delivered or received by it under the Management Agreement in accordance with Section 9.3(b); and (iv) indemnify and hold Administrative Agent and Lenders harmless from and against all claims or liabilities in any way arising in connection with payment of any “Termination Amounts,” “Liquidated Damages,” “Termination Fees” or any other costs or fees payable under Section XXIV of the Management Agreement to the extent (A) Administrative Agent or any Lender nonetheless becomes liable to pay any such amounts as a consequence of a Default and subsequent “Sale of the Hotel” notwithstanding best efforts to sell the “Hotel” in a manner, and to a person, so that the “Operator’s Termination Amount” or other amounts are not due and payable, or (B) such amounts become due and payable as a result of affirmative actions of Borrower prior to acceleration of the Loan (all terms in quotations in this clause shall have the meanings given thereto in the Management Agreement).
View Source
Borrower and Operating. Lessee Owner shall cause the Mortgage Loan Parties to establish and maintain the Deposit Account with the Deposit Bank pursuant to the Deposit Account Agreement and otherwise comply with the provisions of Article 3 of the Mortgage Loan Agreement. Funds deposited into each Clearing Account shall be swept by the Clearing Bank on a daily basis into the Deposit Account and applied and disbursed in accordance with the Mortgage Loan Agreement. Neither Borrower nor Operating Lessee Owner shall permit any Mortgage Loan Party to amend the terms of any Clearing Account Agreement or the Deposit Account Agreement without the prior written consent of Lender.
View Source

Related to Borrower and Operating

  • Management and Operation 6.01 Management of Partnership Affairs 16 6.02 Duties and Obligations of General Partner 17 6.03 Release and Indemnification 17 6.04 Power of Attorney 18

  • Management and Operations Promotes the learning and growth of all students and the success of all staff by ensuring a safe, efficient, and effective learning environment, using resources to implement appropriate curriculum, staffing, and scheduling

  • Use and Operation 3.1 Permitted Use ......................................................................................................

  • Business and Operations Borrower will continue to engage in the businesses presently conducted by it as and to the extent the same are necessary for the ownership, maintenance, management and operation of the Property. Borrower will qualify to do business and will remain in good standing under the laws of each jurisdiction as and to the extent the same are required for the ownership, maintenance, management and operation of the Property.

  • Management and Operations of Business Except as otherwise expressly provided in this Agreement, all powers to control and manage the business and affairs of the Partnership shall be vested exclusively in the General Partner; the Limited Partner shall not have any power to control or manage the Partnership.