Special Covenants Relating to Collateral Clause Samples
The "Special Covenants Relating to Collateral" clause sets out specific obligations and restrictions that a borrower or debtor must follow regarding the assets pledged as collateral under an agreement. Typically, this clause may require the borrower to maintain the collateral in good condition, refrain from selling or transferring it without consent, and provide regular updates or access to the lender for inspection. Its core practical function is to protect the lender’s security interest in the collateral, ensuring that the value and integrity of the pledged assets are preserved throughout the term of the agreement.
Special Covenants Relating to Collateral. Borrower covenants and agrees that from the date hereof until the payment and performance in full of the Obligations, unless Bank otherwise consents in writing:
Special Covenants Relating to Collateral. (a) BorrowerBorrowers shall defend the Collateral, the title and interest therein represented and warranted in the Security Documents and the legality, validity, binding nature and enforceability of each Lien and encumbrance contained in the Security Documents and the first priority of the Security Documents against all matters, including: (i) any attachment, levy, or other seizure by legal process or otherwise of any or all Collateral; (ii) any Lien or encumbrance or claim thereof on any or all Collateral; (iii) any attempt to foreclose, conduct a trustee’s sale, or otherwise realize upon any or all Collateral under any Lien or encumbrance, regardless of whether a Permitted Lien and regardless of whether junior or senior to the Security Documents; and (iv) any claim questioning the legality, validity, binding nature, enforceability or priority of the Security Documents. BorrowerBorrowers shall (or shall cause each Owned DST (or its wholly owned Subsidiary) to) defend title to the Owned Core Assets and every part thereof, subject only to Permitted Liens, against the claims of all Persons whomsoever, at Borrower’sBorrowers’ sole cost and expense. BorrowerBorrowers shall notify Administrative Agent and promptly after obtaining knowledge in writing of any of the foregoing and will provide such information with respect thereto as Administrative Agent may from time to time request. ___ BorrowerBorrowers shall reimburse Agent for any actual losses, out-of-pocket costs, damages (excluding special, consequential or punitive damages except to the extent awarded in favor of any third party against Agent) or expenses (including fees of outside counsel and court costs) incurred by Agent if an interest in Collateral or the Owned Core Asset, other than as permitted hereunder, is claimed by another Person except to the extent a title company or other third party is liable for the payment or reimbursement of such expenses and actually pays or reimburses Agent for such expenses.
(b) BorrowerBorrowers shall (and shall cause each Owned DST (or its wholly owned Subsidiary) to) keep and maintain in full force and effect all restrictive covenants, development agreements, easements and other similar agreements with Governmental Authorities and other Persons that are necessary for the use, entitlement, management, development, operation, marketing and sale of each Owned Core Asset. BorrowerBorrowers shall not (and shall not permit any Owned DST (and its wholly owned Subsidiary) t...
Special Covenants Relating to Collateral. Borrower agrees that:
Special Covenants Relating to Collateral. 74 (a) Defense of Title..........................................................74 (b) No Encumbrances...........................................................75 (c) Further Assurances........................................................75 (d) Utilities.................................................................75 (e) Contracts.................................................................75 (f) No Residential Use........................................................75 (g) Flood Insurance...........................................................76 (h) Compliance with Permitted Exceptions......................................76 (i) Model Complexes...........................................................76 (j) Title Policy Endorsements.................................................76 (k) Improvement Districts.....................................................76
Special Covenants Relating to Collateral