Liens and Right to Contest Clause Samples
The "Liens and Right to Contest" clause defines the parties' obligations regarding liens that may be placed on property or assets related to the contract, and outlines the right to challenge or contest such liens. Typically, this clause requires a party to promptly address any liens filed against the property, such as by paying off the underlying debt or taking legal action to dispute the validity of the lien. For example, if a contractor files a mechanic's lien for unpaid work, the responsible party must either resolve the payment or formally contest the lien in court. The core function of this clause is to protect the property from encumbrances that could interfere with ownership or use, while also providing a clear process for disputing liens that are believed to be invalid or improper.
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Liens and Right to Contest. Tenant shall not permit the Leased Premises to become subject to any mechanics’ laborers’ or materialman’s lien on account of labor or material furnished to Tenant or claimed to have been furnished to Tenant in connection with work of any character performed or claimed to have been performed on the Leased Premises by, or at the direction or sufferance of, Tenant; provided, however, that Tenant shall have the right to contest in good faith and with reasonable diligence, the validity of any such lien or claimed lien if Tenant shall give to Landlord such security as may be deemed satisfactory to Landlord to insure payment thereof and to prevent and sale, foreclosure, or forfeiture of the Leased Premises by reason of non-payment therefor; provided further, however, that on final determination of the lien or claim for lien, Tenant shall immediately pay any judgment rendered, with all proper costs and charges, and shall have the lien released and any judgment satisfied.
Liens and Right to Contest. Tenant shall not permit the Leased Premises to become subject to any mechanics’, laborers’ or materialmen’s lien on account of labor or material furnished to Tenant or claimed to have been furnished to Tenant in connection with work of any character performed or claimed to have been performed on the Leased Premises by, or at the direction or sufferance of, Tenant; provided, however, that Tenant shall have the right to contest in good faith and with reasonable diligence, the validity of any such lien or claimed lien if Tenant shall give to Landlord such security as may be deemed satisfactory to Landlord to insure payment thereof and to prevent any sale, foreclosure, or forfeiture of the Leased Premises by reason of non-payment thereof; provided further, however, that on final determination of the lien or claim for lien, Tenant shall immediately pay any judgment rendered, with all proper costs and charges, and shall have the lien released and any judgment satisfied. If Tenant fails to have any such lien released or judgement satisfied within 10 days written notice of such failure from Landlord, then Landlord may pay any such lien and Tenant shall reimburse Landlord for Landlord’s cost associated with the same with interest at 10% per annum from the date expended by Landlord until paid by ▇▇▇▇▇▇.
Liens and Right to Contest. Tenant covenants and agrees not to suffer or permit any lien of mechanics or materialmen or others to be placed against the Land, Building or the Premises or Tenant's interest in the Premises, with respect to work or services performed or claimed to have been performed for or materials furnished or claimed to have been furnished to Tenant or the Premises, and, in case of any such lien attaching or claim thereof being asserted, Tenant covenants and agrees no later than thirty (30) days from the filing thereof or such claim being asserted (i) to cause it to be released and removed of record and deliver a waiver of all liens, rights and claims against the Real Estate from the claimant, or (ii) to provide Landlord with endorsements (satisfactory to Landlord and Landlord's mortgagee) to Landlord and Landlord's mortgagee's title insurance policies insuring against the existence of or attempted enforcement of such lien or (iii) to provide Landlord with a bond from a company satisfactory to Landlord in form, substance and amount satisfactory to Landlord, insuring against loss arising from the existence or attempted enforcement of such lien. In the event that such lien is not released, removed, insured or bonded over within said thirty (30) day period, Landlord, at its sole option, may take all action necessary to release and remove such lien (without any duty to investigate the validity thereof) and Tenant shall promptly upon notice, either before or after such release and removal, pay or reimburse Landlord for all sums, costs and expenses (including reasonable attorneys' fees) incurred by landlord in connection with such lien, together with interest thereon at the Interest Rate. Without limitation of its obligations above, Tenant shall indemnify, defend and hold harmless Landlord from and against any and all claims, actions, damages, costs, expenses (including attorneys’ fees) arising from the existence or attempted enforcement of or collection on any such lien, and Tenant’s failure to timely discharge or insure over a lien. Tenant shall defend any such action, at its expense, using counsel reasonably satisfactory to Landlord, which attorney shall represent Landlord’s interests. If such attorney refuses to represent Landlord’s interest, Landlord may retain its own counsel, and Tenant shall pay or reimburse Landlord for all attorneys’ fees and costs incurred in connection therewith. Tenant’s obligations under this Article XXI shall survive any termination of this ...
Liens and Right to Contest. Tenant shall not permit the Leased Premises or the Real Estate to become subject to any mechanics’, laborers’ or materialmen’s lien on account of labor or material furnished to Tenant or claimed to have been furnished to Tenant in connection with work of any character performed or claimed to have been performed on the Leased Premises by, or at the direction or sufferance of Tenant. In the event a mechanic’s lien is filed against the Leased Premises or the Real Estate due to work performed by or on behalf of Tenant, Tenant shall discharge or bond off same within fifteen (15) days from Tenant’s receipt of written evidence of the filing thereof. If Tenant fails to discharge or bond off said lien, Landlord may bond off or pay same without inquiring into the validity or merits of such lien, and all sums so advanced shall be paid on demand by Tenant as additional rent. Tenant hereby agrees to indemnify and hold Landlord harmless for any liability, cost, damage and expense occasioned by any mechanic’s lien filed against the Leased Premises or the Real Estate on account of labor or material furnished to Tenant or claimed to have been furnished to Tenant in connection with the Leased Premises or the Real Estate.
Liens and Right to Contest. Tenant shall not permit the Leased Premises or the Real Estate or any part thereof to become subject to any mechanic's, laborer's or materialmen's lien on account of labor or material furnished to Tenant or claimed to have been furnished to Tenant in connection with Alterations or any other work performed or claimed to have been performed on any part of the Real Estate by, or at the direction or sufferance of Tenant. If any such lien or claim for lien is filed, Tenant shall immediately either have such lien or claim for lien released of record or shall deliver to Landlord a bond, in form, content, amount and issued by surety or other assurances reasonably satisfactory to Landlord, against all costs and liabilities resulting from such lien or claim for lien and the foreclosure or attempted foreclosure thereof. If Tenant shall fail to have any such lien or claim for lien so released or to deliver such bond to Landlord, Landlord, without investigating the validity of such a lien, may pay or discharge the same and, within ten (10) days of Landlord's written request therefore. Tenant shall reimburse Landlord for its actual costs and expenses in respect thereof including but not limited to Landlord's attorneys' fees and expenses.
Liens and Right to Contest. 18 XII. UTILITIES.................................................................................18 12.1 Utilities.......................................................................18 XIII. INDEMNITY................................................................................19 13.1 Indemnity.......................................................................19 XIV.
Liens and Right to Contest. Tenant shall not permit the Leased Premises to become subject to any mechanics’, laborers’ or materialmen’s lien on account of labor or material furnished to Tenant or claimed to have been furnished to Tenant in connection with work of any character performed or claimed to have been performed on the Leased Premises by, or at the direction or sufferance of Tenant; provided, however, that Tenant shall have the right to contest, in good faith and with reasonable diligence, the validity of any such lien or claimed lien. At the request of Landlord, Tenant shall furnish and deposit bond or other security with the title company of Landlord’s choosing to insure over any lien related to the liabilities referenced in this Section 11.2 to the extent existing during the last year of the initial term of this Lease, or during the last year of any Extension Term.
Liens and Right to Contest. If a person should attempt to place a mechanics', laborers', or materialmen's lien upon any part of the Leased Premises, Tenant shall so notify Landlord in writing within ten (10) days of discovering the attempt to place such a lien. Tenant shall not permit the Leased Premises to become subject to any mechanics', laborers' or materialmen's lien on account of labor or material furnished to Tenant or claimed to have been furnished to Tenant in connection with work of any character performed or claimed to have been performed for the Leased Premises by, or at the direction or sufferance of, Tenant; provided, however, that Tenant shall have the right to contest, in good faith and with reasonable diligence, the validity of any such lien or claimed lien if Tenant shall give to Landlord, upon Landlord's request, a bond in an amount equal to one and one-half (1-1/2) times the estimated cost of such improvements, to insure Landlord against any liability for mechanics' and materialmen's liens; provided further, however, that on final determination of the lien or claim for lien, Tenant shall immediately pay any judgment rendered, with all proper costs and charges, and shall have the lien released and any judgment satisfied.
Liens and Right to Contest. Tenant shall not permit the Leased Premises to become subject to any mechanics', laborers' or materialmen's lien on account of labor or material furnished to Tenant or claimed to have been furnished to Tenant in connection with work of any character performed or claimed to have been performed on the Leased Premises by, or at the direction of sufferance of Tenant; provided, however, that Tenant shall have the right to contest, in good faith and by appropriate proceedings, the validity of any such lien or claimed lien; provided that Tenant bonds over such lien or provides Landlord with other adequate security therefor and provided further, that on final determination of the lien or claim for lien, Tenant shall immediately pay any judgment rendered, with all proper costs and charges, and shall have the lien released and any judgment satisfied.
Liens and Right to Contest. Tenant agrees to hold Landlord harmless against all liens, claims and liabilities of every kind, nature and description which may arise out of or in any way be connected with any work performed by or on behalf of Tenant. Tenant shall not permit the Premises to become subject to any mechanics’, laborers’ or materialmen’s lien on account of labor, material or services furnished to Tenant or claimed to have been furnished to Tenant in connection with work of any character performed or claimed to have been performed for the Premises by, or at the direction or sufferance of Tenant. If any such lien is filed against the Premises, Tenant shall within thirty (30) days thereafter either pay and discharge such lien of record, or provide Landlord with a bond, title indemnity or other security acceptable to Landlord to assure full payment and discharge of such lien and to prevent any sale, foreclosure or other forfeiture by reason of non-payment of such lien. If Tenant fails to so discharge the lien or post such bond or security within said thirty (30) days, then Landlord may, without investigation as to the validity of the lien claim, pay and discharge such lien and Tenant shall pay the cost thereof, and related attorneys fees, to Landlord upon demand.