Common use of Anti-Forfeiture Clause in Contracts

Anti-Forfeiture. Borrower hereby covenants and agrees not to commit, permit or suffer to exist any act or omission affording the Federal government or any state or local government the right of forfeiture under any Federal or state RICO or similar law as against the Properties or any part thereof or interest therein or any monies paid in performance of Borrower's obligations under this Agreement, the Mortgages, the Note or any of the other Loan Documents. In furtherance thereof, Borrower hereby indemnifies Lender and agrees to defend and hold Lender harmless from and against any loss, damage or injury by reason of the breach of the covenants and agreements set forth in this paragraph. Without limiting the generality of the foregoing, the filing of formal charges or the commencement of proceedings against Borrower or against the Properties or any part thereof or interest therein under any Federal or state law for which forfeiture of the Properties or any part thereof or of any monies paid in performance of Borrower's obligations under the Loan Documents is a potential result, shall, at the election of Lender, but otherwise subject to the immediately following sentence, constitute an Event of Default hereunder without notice or opportunity to cure. Notwithstanding the foregoing, after prior notice to Lender, Borrower, at its own cost and expense, may contest the validity of or application of any such law affording such forfeiture, provided that (i) no default shall have occurred and shall be continuing under the Note, the Mortgages, this Agreement or any of the other Loan Documents, (ii) such proceeding shall be permitted under and be conducted in accordance with the provisions of any other instrument to which Borrower, or the Properties, are subject and shall not constitute a default thereunder, (iii) neither the Properties nor any portion thereof nor any interest therein will in the opinion of Lender be in danger of being sold, forfeited, terminated, canceled or lost, and (iv) Borrower shall have deposited with Lender cash, cash equivalent or letter of credit satisfactory to Lender in an amount sufficient to discharge any lien together with interest and penalties thereon arising out of such law. Notwithstanding the foregoing, Borrower shall not be required to make any deposit with Lender pursuant to clause (iv) of the preceding sentence, if Lender is reasonably satisfied that (a) the act or omission affording such forfeiture was committed by a Person other than Borrower or an Affiliate or subsidiary of Borrower, (b) Borrower is diligently pursuing its rights and remedies against such Person, (c) neither the Properties nor any portion thereof or interest therein will be in danger of being sold, forfeited, terminated, canceled or lost, and (d) the respective liens and priorities of the Mortgages will not be in danger of being primed, diminished or forfeited.

Anti-Forfeiture. Borrower Mortgagor hereby further expressly represents and warrants to Mortgagee that to the best of Mortgagor's knowledge there has not been committed by Mortgagor or any other person involved with the Mortgaged Property or the Mortgagor any act or omission affording the federal government or any state or local government the right and/or remedy of forfeiture as against the Mortgaged Property or any part thereof or any monies paid in performance of its obligations under the Note or under any of the other Construction Loan Documents, and Mortgagor hereby covenants and agrees not to commit, permit or suffer to exist any act or omission affording the Federal government or any state or local government the such right and/or remedy of forfeiture under any Federal or state RICO or similar law as against the Properties or any part thereof or interest therein or any monies paid in performance of Borrower's obligations under this Agreement, the Mortgages, the Note or any of the other Loan Documentsforfeiture. In furtherance thereof, Borrower Mortgagor hereby indemnifies Lender Mortgagee and agrees to defend and hold Lender Mortgagee harmless from and against any loss, damage or injury other injury, including without limitation, reasonable attorneys' fees and expenses, to the fullest extent not prohibited by applicable law, and all other costs and expenses incurred by Mortgagee in preserving its lien, security interest and other rights and interests in the Mortgaged Property and any additional collateral under any of the Construction Loan Documents in any proceeding or other governmental action asserting forfeiture thereof, by reason of of, or in any manner resulting from, the breach of the covenants and agreements or the warranties and representations set forth in this paragraphthe preceding sentence. Without limiting the generality of the foregoing, the filing of formal charges or the commencement of proceedings against Borrower Agency, Mortgagor, Mortgagee, any guarantor, any additional collateral under any of the Construction Loan Documents or against the Properties all or any part thereof or interest therein of the Mortgaged Property under any Federal federal or state law for in respect of which forfeiture of the Properties Mortgaged Property or any part thereof or of any monies paid in performance of BorrowerMortgagor's obligations under the Construction Loan Documents is a potential result, result shall, at the election of Lender, but otherwise subject to the immediately following sentenceMortgagee in its absolute discretion, constitute an Event of Default hereunder without notice or opportunity to cure. Notwithstanding the foregoing, after prior notice to Lender, Borrower, at its own cost and expense, may contest the validity of or application of any such law affording such forfeiture, provided that (i) no default shall have occurred and shall be continuing under the Note, the Mortgages, this Agreement or any of the other Loan Documents, (ii) such proceeding shall be permitted under and be conducted in accordance with the provisions of any other instrument to which Borrower, or the Properties, are subject and shall not constitute a default thereunder, (iii) neither the Properties nor any portion thereof nor any interest therein will in the opinion of Lender be in danger of being sold, forfeited, terminated, canceled or lost, and (iv) Borrower shall have deposited with Lender cash, cash equivalent or letter of credit satisfactory to Lender in an amount sufficient to discharge any lien together with interest and penalties thereon arising out of such law. Notwithstanding the foregoing, Borrower shall not be required to make any deposit with Lender pursuant to clause (iv) of the preceding sentence, if Lender is reasonably satisfied that (a) the act or omission affording such forfeiture was committed by a Person other than Borrower or an Affiliate or subsidiary of Borrower, (b) Borrower is diligently pursuing its rights and remedies against such Person, (c) neither the Properties nor any portion thereof or interest therein will be in danger of being sold, forfeited, terminated, canceled or lost, and (d) the respective liens and priorities of the Mortgages will not be in danger of being primed, diminished or forfeited.

Anti-Forfeiture. Borrower Mortgagor hereby further expressly represents and warrants to Mortgagee that to the best of Mortgagor’s knowledge there has not been committed by Mortgagor or any other person involved with the Mortgaged Property or the Mortgagor any act or omission affording the federal government or any state or local government the right and/or remedy of forfeiture as against the Mortgaged Property or any part thereof or any monies paid in performance of its obligations under the Note or under any of the other Loan Documents, and Mortgagor hereby covenants and agrees not to commit, permit or suffer to exist any act or omission affording the Federal government or any state or local government the such right and/or remedy of forfeiture under any Federal or state RICO or similar law as against the Properties or any part thereof or interest therein or any monies paid in performance of Borrower's obligations under this Agreement, the Mortgages, the Note or any of the other Loan Documentsforfeiture. In furtherance thereof, Borrower Mortgagor hereby indemnifies Lender Mortgagee and agrees to defend and hold Lender Mortgagee harmless from and against any loss, damage or injury other injury, including without limitation, reasonable attorneys’ fees and expenses, to the fullest extent not prohibited by applicable law, and all other costs and expenses incurred by Mortgagee in preserving its lien, security interest and other rights and interests in the Mortgaged Property and any additional collateral under any of the Loan Documents in any proceeding or other governmental action asserting forfeiture thereof, by reason of of, or in any manner resulting from, the breach of the covenants and agreements or the warranties and representations set forth in this paragraphthe preceding sentence. Without limiting the generality of the foregoing, the filing of formal charges or the commencement of proceedings against Borrower Mortgagor, Mortgagee, any guarantor, any additional collateral under any of the Loan Documents or against the Properties all or any part thereof or interest therein of the Mortgaged Property under any Federal federal or state law for in respect of which forfeiture of the Properties Mortgaged Property or any part thereof or of any monies paid in performance of Borrower's Mortgagor’s obligations under the Loan Documents is a potential result, result shall, at the election of Lender, but otherwise subject to the immediately following sentenceMortgagee in its absolute discretion, constitute an Event of Default hereunder without notice or opportunity to cure. Notwithstanding the foregoing, after prior notice to Lender, Borrower, at its own cost and expense, may contest the validity of or application of any such law affording such forfeiture, provided that (i) no default shall have occurred and shall be continuing under the Note, the Mortgages, this Agreement or any of the other Loan Documents, (ii) such proceeding shall be permitted under and be conducted in accordance with the provisions of any other instrument to which Borrower, or the Properties, are subject and shall not constitute a default thereunder, (iii) neither the Properties nor any portion thereof nor any interest therein will in the opinion of Lender be in danger of being sold, forfeited, terminated, canceled or lost, and (iv) Borrower shall have deposited with Lender cash, cash equivalent or letter of credit satisfactory to Lender in an amount sufficient to discharge any lien together with interest and penalties thereon arising out of such law. Notwithstanding the foregoing, Borrower shall not be required to make any deposit with Lender pursuant to clause (iv) of the preceding sentence, if Lender is reasonably satisfied that (a) the act or omission affording such forfeiture was committed by a Person other than Borrower or an Affiliate or subsidiary of Borrower, (b) Borrower is diligently pursuing its rights and remedies against such Person, (c) neither the Properties nor any portion thereof or interest therein will be in danger of being sold, forfeited, terminated, canceled or lost, and (d) the respective liens and priorities of the Mortgages will not be in danger of being primed, diminished or forfeited.

Anti-Forfeiture. Borrower Mortgagor hereby further expressly represents and warrants to Mortgagee that to the best of Mortgagor's knowledge there has not been committed by Mortgagor or any other person involved with the Mortgaged Property or the Mortgagor any act or omission affording the federal government or any state or local government the right and/or remedy of forfeiture as against the Mortgaged Property or any part thereof or any monies paid in performance of its obligations under the Note or under any of the other Loan Documents, and Mortgagor hereby covenants and agrees not to commit, permit or suffer to exist any act or omission affording the Federal government or any state or local government the such right and/or remedy of forfeiture under any Federal or state RICO or similar law as against the Properties or any part thereof or interest therein or any monies paid in performance of Borrower's obligations under this Agreement, the Mortgages, the Note or any of the other Loan Documentsforfeiture. In furtherance thereof, Borrower Mortgagor hereby indemnifies Lender Mortgagee and agrees to defend and hold Lender Mortgagee harmless from and against any loss, damage or injury other injury, including without limitation, reasonable attorneys' fees and expenses, to the fullest extent not prohibited by applicable law, and all other costs and expenses incurred by Mortgagee in preserving its lien, security interest and other rights and interests in the Mortgaged Property and any additional collateral under any of the Loan Documents in any proceeding or other governmental action asserting forfeiture thereof, by reason of of, or in any manner resulting from, the breach of the covenants and agreements or the warranties and representations set forth in this paragraphthe preceding sentence. Without limiting the generality of the foregoing, the filing of formal charges or the commencement of proceedings against Borrower Agency, Mortgagor, Mortgagee, any guarantor, any additional collateral under any of the Loan Documents or against the Properties all or any part thereof or interest therein of the Mortgaged Property under any Federal federal or state law for in respect of which forfeiture of the Properties Mortgaged Property or any part thereof or of any monies paid in performance of BorrowerMortgagor's obligations under the Loan Documents is a potential result, result shall, at the election of Lender, but otherwise subject to the immediately following sentenceMortgagee in its absolute discretion, constitute an Event of Default hereunder without notice or opportunity to cure. Notwithstanding the foregoing, after prior notice to Lender, Borrower, at its own cost and expense, may contest the validity of or application of any such law affording such forfeiture, provided that (i) no default shall have occurred and shall be continuing under the Note, the Mortgages, this Agreement or any of the other Loan Documents, (ii) such proceeding shall be permitted under and be conducted in accordance with the provisions of any other instrument to which Borrower, or the Properties, are subject and shall not constitute a default thereunder, (iii) neither the Properties nor any portion thereof nor any interest therein will in the opinion of Lender be in danger of being sold, forfeited, terminated, canceled or lost, and (iv) Borrower shall have deposited with Lender cash, cash equivalent or letter of credit satisfactory to Lender in an amount sufficient to discharge any lien together with interest and penalties thereon arising out of such law. Notwithstanding the foregoing, Borrower shall not be required to make any deposit with Lender pursuant to clause (iv) of the preceding sentence, if Lender is reasonably satisfied that (a) the act or omission affording such forfeiture was committed by a Person other than Borrower or an Affiliate or subsidiary of Borrower, (b) Borrower is diligently pursuing its rights and remedies against such Person, (c) neither the Properties nor any portion thereof or interest therein will be in danger of being sold, forfeited, terminated, canceled or lost, and (d) the respective liens and priorities of the Mortgages will not be in danger of being primed, diminished or forfeited.