Common use of Assignment of Other Contracts Clause in Contracts

Assignment of Other Contracts. As additional security for the payment of the Loans and Borrower’s other Obligations under the Loan Documents, and the performance of the covenants and agreements under the Loan Documents, Borrower hereby transfers and collaterally assigns to Lender all of Borrower’s rights, titles and interests, but not its obligations, in, under and to any all other contracts and agreements between Borrower and any Persons pertaining to the construction of the Home and each Project (the “Other Contracts”), whether now existing or hereafter entered into, upon the following terms and conditions: (a) Borrower represents and warrants that the copy of any Other Contracts it has furnished to Lender is a true and complete copy thereof and that Borrower’s interest therein is not subject to any claim, setoff, or encumbrance. (b) neither this assignment nor any action by Lender shall constitute an assumption by Lender of any obligations under any Other Contracts, and Borrower shall continue to be liable for all obligations of Borrower thereunder, Borrower hereby agreeing to perform all of its obligations under any Other Contracts. Borrower indemnifies and holds Lender harmless against and from any loss, cost, liability, or expense (including, but not limited to, reasonable attorneys’ fees) resulting from any failure of Borrower to so perform, except for matters as a result of the gross negligence or willful misconduct of Lender; (c) during the existence and continuance of an Event of Default, Lender shall have the right at any time (but shall have no obligation) to take in its name or in the name of Borrower such action as Lender may at any time reasonably determine to be necessary or advisable to cure any default under any Other Contracts or to protect the rights of Borrower, Lender thereunder. Lender shall incur no liability if any action so taken by it shall prove to be inadequate or invalid, and Borrower agrees to hold Lender free and harmless against and from any loss, cost, liability or expense (including, but not limited to, reasonable attorneys’ fees) incurred in connection with any such action, except for a loss, cost, liability or expense resulting solely from Lender’s intentional actions or gross negligence; (d) during the existence and continuance of an Event of Default, Borrower hereby irrevocably constitutes and appoints Lender as Borrower’s attorney-in-fact, in Borrower’s name or in Lender’s name, to enforce all rights of Borrower under any Other Contracts; (e) except during the existence of an Event of Default, Borrower shall have the right to exercise its rights as owner under any Other Contracts, provided that Borrower shall not cancel or amend such Other Contracts or do or suffer to be done any act which would impair the security constituted by this assignment without the prior written consent of Lender, which shall not be unreasonably withheld or delayed; and (f) upon the request of Lender, Borrower shall use its best efforts to cause each Person that is a party to any Other Contract to deliver to Lender, a consent to the foregoing assignment in form and substance satisfactory to Lender.

Assignment of Other Contracts. As additional security for the payment of the Loans and Borrower’s other Obligations under the Loan Documents, Debt and the payment and performance of the obligations, covenants and agreements under the Loan Documents, Borrower and each Borrower-Related Party hereby transfers and collaterally assigns to Lender for the benefit of Lender all of Borrower’s rights, titles rights and interestsinterest, but not its obligations, in, under and to any all other contracts and agreements between Borrower or any Borrower-Related Party and any Persons pertaining to the construction of the Home and each Project Mortgaged Property (the “Other Contracts”), whether now existing or hereafter entered into, upon the following terms and conditions: (ai) Borrower and each Borrower-Related Party represents and warrants that the copy of any Other Contracts it has furnished to Lender is a true and complete copy thereof and that Borrower’s or such Borrower-Related Party’s interest therein is not subject to any claim, setoff, or encumbrance.; (bii) neither Neither this assignment nor any action by Lender shall constitute an assumption by Lender of any obligations under any Other Contracts, and Borrower or such Borrower-Related Party shall continue to be liable for all obligations of Borrower or such Borrower-Related Party thereunder, Borrower or such Borrower-Related Party hereby agreeing to perform all of its obligations under any Other Contracts. Borrower and each Borrower-Related Party indemnifies and holds Lender harmless against and from any loss, cost, liability, or expense (including, but not limited to, reasonable attorneys’ fees) resulting from any failure of Borrower or such Borrower-Related Party to so perform, except for matters as a result of the gross negligence or willful misconduct of Lender; (ciii) during During the existence and continuance of an Event of Default, Lender shall have the right at any time (but shall have no obligation) to take in its name or in the name of Borrower such action as Lender may at any time reasonably determine to be necessary or advisable to cure any default under any Other Contracts or to protect the rights of Borrower, Borrower or Lender thereunder. Lender shall incur no liability if any action so taken by it shall prove to be inadequate or invalid, and Borrower agrees to hold Lender free and harmless against and from any loss, cost, liability or expense (including, but not limited to, reasonable attorneys’ fees) incurred in connection with any such action, except for a loss, cost, liability or expense resulting solely from Lender’s intentional actions or gross negligence; (div) during During the existence and continuance of an Event of Default, Borrower and each Borrower-Related Party hereby irrevocably constitutes and appoints Lender as Borrower’s or such Borrower-Related Party’s attorney-in-fact, in Borrower’s or such Borrower-Related Party’s name or in Lender’s name, to enforce all rights of Borrower or such Borrower-Related Party under any Other Contracts. Such appointment is coupled with an interest and is therefore irrevocable; (ev) except Except during the existence of an Event of Default, Borrower and each Borrower-Related Party shall have the right to exercise its rights as owner under any Other Contracts, provided that Borrower or such Borrower-Related Party shall not cancel or amend such Other Contracts or do or suffer to be done any act which would impair the security constituted by this assignment without the prior written consent of Lender, which shall not may be unreasonably given or withheld or delayed; and (f) upon the request of in Lender, Borrower shall use its best efforts to cause each Person that is a party to any Other Contract to deliver to Lender, a consent to the foregoing assignment in form and substance satisfactory to Lender.’s sole discretion;