Borrower and Operator Covenants Clause Samples
The Borrower and Operator Covenants clause sets out specific obligations and promises that both the borrower and the operator must adhere to throughout the term of an agreement. These covenants typically include requirements such as maintaining the property in good condition, complying with all applicable laws, and providing regular financial or operational reports. By clearly outlining these ongoing duties, the clause ensures that both parties maintain certain standards and behaviors, thereby protecting the interests of the lender or other stakeholders and reducing the risk of default or mismanagement.
Borrower and Operator Covenants. (a) Borrower covenants ------------------------------- and agrees that, from the date hereof and until payment in full of the Indebtedness:
Borrower and Operator Covenants. (a) Borrower hereby covenants with Lender that during the term of this Assignment: (i) Borrower shall not transfer the responsibility for the operation of the Mortgaged Property from Operator to any other person or entity without the prior written consent of Lender; (ii) Borrower shall not terminate or amend any of the terms or provisions of the Operating Lease nor shall Borrower assign its rights under the Operating Lease without the prior written consent of Lender; (iii) within 5 days of Borrower’s receipt, Borrower shall give Lender written notice of any notice or information that Borrower receives which indicates that either Borrower or Operator is in default under the terms of the Operating Lease, Operator is terminating the Operating Lease or that Operator is otherwise discontinuing its operation of the Mortgaged Property; and (iv) Borrower agrees that after Borrower receives notice (or otherwise has actual knowledge) of an Event of Default under the Instrument, it will not make any payment of fees under or pursuant to the Operating Lease without Lender’s prior written consent.
(b) Operator hereby covenants with Lender that during the term of this Assignment: (i) Operator shall not transfer the responsibility for the management of the Mortgaged Property from Manager to any other person or entity without the prior written consent of Lender; (ii) Operator shall not terminate or amend any of the terms or provisions of the Management Agreement nor shall Operator assign its rights under the Management Agreement without the prior written consent of Lender; (iii) within 5 days of Operator’s receipt, Operator shall give Lender written notice of any notice or information that Operator receives which indicates that either Operator or Manager is in default under the terms of the Management Agreement, Manager is terminating the Management Agreement or that Manager is otherwise discontinuing its management of the Mortgaged Property; and (iv) Operator agrees that after Operator receives notice (or otherwise has actual knowledge) of an Event of Default under the Instrument, it will not make any payment of fees under or pursuant to the Management Agreement without Lender’s prior written consent.
Borrower and Operator Covenants. Each of Borrower and Operator covenants and agrees that: