ADDITIONAL PROTECTIVE ADVANCES Clause Samples
The "Additional Protective Advances" clause authorizes a lender to make extra advances of funds beyond the original loan amount to protect its security interest in the collateral. These advances may cover costs such as property taxes, insurance premiums, or emergency repairs if the borrower fails to pay them, ensuring the collateral remains protected and retains its value. The core function of this clause is to allow the lender to safeguard its investment and minimize risk by addressing unforeseen expenses that could jeopardize the security for the loan.
ADDITIONAL PROTECTIVE ADVANCES. Borrower agrees that any and all Protective Advances by Lender to protect the Collateral or for any other purpose under the Loan Documents after Borrower has failed to take any such required action after receipt of notice from Lender shall be considered Advances pursuant to this Agreement, and Borrower acknowledges that such advances may be made by Lender in its sole and absolute discretion and without any request or authorization of Borrower. Any such Protective Advances shall be immediately due and payable and shall bear interest at the Default Interest Rate until paid. Borrower acknowledges and agrees that such Protective Advances may exceed the amount of Advances otherwise available under the Borrowing Base, and Borrower nonetheless agrees to pay such Protective Advances as provided herein and agrees that such Protective Advances shall be secured by all Collateral. DATED as of the date first above stated. BORROWER: LYON BRANCHES, LLC, a Delaware limited liability company By: ▇▇▇▇▇▇▇ ▇▇▇▇ Homes, Inc., a California corporation, its managing member By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇ Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇ Title: Senior Vice President By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇ Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇ Title: Vice President Chief Financial Officer LENDER: CALIFORNIA BANK & TRUST, a California banking corporation By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇ Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇ Title: Senior Vice President THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF IRVINE, COUNTY OF ORANGE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: LOTS 1 THROUGH 48, INCLUSIVE, AND ▇▇▇▇ ▇ ▇▇▇▇▇▇▇ ▇, ▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇ ▇▇. ▇▇▇▇▇, IN THE CITY OF IRVINE, AS PER MAP RECORDED IN BOOK 909, PAGE(S) 29 THROUGH 33, INCLUSIVE, OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE CALIFORNIA. EXCEPT ALL OIL, OIL RIGHTS, MINERALS, MINERAL RIGHTS, NATURAL GAS RIGHTS, AND OTHER HYDROCARBONS BY WHATSOEVER NAME KNOWN THAT MAY WITHIN OR UNDER THE PARCEL OF LAND HEREINABOVE DESCRIBED, TOGETHER WITH THE PERPETUAL RIGHT OF DRILLING, MINING, EXPLORING AND OPERATING THEREFOR AND STORING IN AND REMOVING THE SAME FROM SAID LAND OR ANY OTHER LAND, INCLUDING THE RIGHT TO WHIPSTOCK OR DIRECTIONALLY DRILL AND MINE FROM LANDS OTHER THAN SAID LAND HEREINABOVE DESCRIBED, OIL OR GAS ▇▇▇▇▇, TUNNELS AND SHAFTS INTO, THROUGH OR ACROSS THE SUBSURFACE OF THE LAND HEREINABOVE DESCRIBED, AND TO BOTTOM SUCH WHIPSTOCKED OR DIRECTIONALLY DRILLED ▇▇▇▇▇, TUNNELS AND SHAFTS UNDER AND BENEATH OR BEYOND THE EXTERIOR LIMITS THEREOF, AND TO REDRILL, RE...
ADDITIONAL PROTECTIVE ADVANCES. Lender may, at its discretion, without any obligation to do so, and without the consent of Borrower, take whatever actions on ▇▇▇▇▇▇▇▇'s behalf as Lender may deem necessary and proper to permit Lender to obtain full recovery and payment of all Obligations and to protect the Collateral. Specifically, but without limitation, Lender may: (a) purchase and maintain insurance on the Collateral and Borrower's other properties, assets, and business operations; (b) pay taxes and governmental assessments on Borrower's behalf; and (c) compromise or otherwise satisfy any claim that a third party may assert against the Collateral, or against Borrower or its property (including the payment of liens or claims against any Collateral). The payment of any of the foregoing, together with the costs and expenses (including Legal Costs and lender representative fees and expenses) incurred in connection with the matter for which the payment is made by Lender, shall be considered to be an Advance. All such Advances, together with interest at the rate or rates then applicable to Borrower's Loans, will be considered as an additional Obligation secured by the Collateral. ▇▇▇▇▇▇'s judgment in making any Advance provided for in this section shall be conclusive and binding on Borrower.
ADDITIONAL PROTECTIVE ADVANCES. Should Company for any reason fail to do what is required by Company under this Agreement, or otherwise, DCS may, at its sole option and discretion, without any obligation to do so, take whatever actions on Company’s behalf as DCS may deem to be necessary and proper to permit DCS to obtain full recovery and payment of all Obligations in favor of DCS. Specifically, but without limitation, DCS may: (a) purchase and maintain insurance on the Collateral and on Company’s other properties and assets, and with respect to Company’s business operations; (b) pay taxes and governmental assessments on Company’s behalf; and (c) compromise or otherwise satisfy any claim that a third party may assert against any of the Collateral, or against Company or its properties. All additional sums that DCS may advance for such purposes, together with interest at the Default Rate, will be considered an additional Obligation subject to and secured by this Agreement.
ADDITIONAL PROTECTIVE ADVANCES. Borrower has represented to Lender that Borrower may not have sufficient funds to pay future real estate taxes which will come due on the Property as and when the same become due. Lender agrees that in the event Borrower cannot make any such payment in full when due, Lender will make an additional protective advance (an "Additional Protective Advance") under the Mortgage sufficient to cause such payment to be made in full, provided, however, (i) that Lender shall not be obligated to advance in the aggregate more than $157,243.38 in Additional Protective Advances pursuant to this paragraph 5(b), (ii) that Lender shall not be obligated to make any Additional Protective Advance if any default shall hereafter occur under this Agreement or any of the other Loan Documents, (iii) that Borrower shall comply with the advances request procedures set forth below, and (iv) that Borrower shall repay any and all Additional Protective Advances, with interest, in the manner provided in paragraph 5(d), below. In the event that Borrower believes that Borrower will not be able to make any real estate tax payment which hereafter becomes due on the Property, Borrower shall deliver to Lender at least sixty (60) days prior to the date on which such payment is to become due (a "Due Date") a copy of the tax bill showing the amou▇▇ ▇nd Due Date of such payment, together with a written request by Borrower that Lender make an Additional Protective Advance, which request shall state the amount that Borrower will be able to pay (the "Borrower's Share") and the amount of the requested Additional Protective Advance. Provided that such requested Additional Protective Advance, if made, would not cause the sum of all Additional Protective Advances made by Lender to exceed $157,243.38 (the "Protective Advances Limit"), Lender shall, upon receipt by Lender from Borrower of the Borrower's Share in cash, cashier's check or wired funds at least fifteen (15) business days prior to the Due Date, make the requested Additional Protective Advance and cause the subject taxes to be paid in full on or before the Due Date. Lender acknowledges that Borrower's failure to pay real estate taxes on the Property shall not constitute a default under the Loan Documents, provided Borrower requests Additional Protective Advances in accordance with the terms of this paragraph 5(b). Borrower acknowledges and agrees, however, that from and after such time, if any, as Lender has advanced Additional Protective Advances...