Common use of Taxes and Other Encumbrances Clause in Contracts

Taxes and Other Encumbrances. Borrower shall make due and timely payment or deposit of all federal, state and local taxes (including but not limited to FICA payments and withholding taxes), impositions, assessments (general or special) or contributions required of it by law, or levied on or assessed against the Premises, the Mortgage, the Note, the Obligations, or any interest of the Lender therein and execute and deliver to Lender, on demand, appropriate certificates attesting to the payment or deposit thereof. It is understood that, to the extent Borrower makes deposits with Lender for taxes and insurance, as provided in Section 4.3, Borrower shall be in compliance with this Section with respect to the deposited sums. (i) Borrower either pays in full the amount under protest in the manner allowed by law, or withholds payment thereof so long as such contest has the effect of preventing the sale or foreclosure of the Premises or any portion thereof; OR (ii) Borrower notifies Lender in writing at least forty-five (45) days prior to the date such imposition will be increased by reason of penalties or interest of its intent to contest the same; and Borrower furnishes Lender with A LETTER OF CREDIT OR SUCH OTHER security, bond or indemnification as Lender may, in good faith, require for the final payment and discharge thereof. In the event of a ruling adverse to Borrower, Borrower shall promptly pay such tax or imposition, together with all interest and penalties.

Taxes and Other Encumbrances. Borrower shall make due and timely payment or deposit of all federal, state and local taxes (including but not limited to FICA payments and withholding taxes), impositions, assessments (general or special) or contributions required of it by law, or levied on or assessed against the Premises, the Mortgage, the Note, the Obligations, or any interest of the Lender therein and execute and deliver to Lender, . on demand, . appropriate certificates attesting to the payment or deposit thereof. It is understood that, to the extent Borrower makes deposits with Lender for taxes and insurance, . as provided in Section 4.3, . Borrower shall be in compliance with this Section with respect to the deposited sums. (i) Borrower either pays in full the amount under protest in the manner allowed by law, or withholds payment thereof so long as such contest has the effect of preventing the sale or foreclosure of the Premises or any portion thereof; OR , or (ii) Borrower notifies Lender in writing at least forty-five (45) days prior to the date such imposition will be increased by reason of penalties or interest of its intent to contest the same; and Borrower furnishes Lender with A LETTER OF CREDIT OR SUCH OTHER a letter of credit or with such other security, bond or indemnification as Lender may, in good faith, require for the final payment and discharge thereof. In the event of a ruling adverse to Borrower, Borrower shall promptly pay such tax or imposition, together with all interest and penalties.