Borrowing Base Hotels Clause Samples

Borrowing Base Hotels. The Banks' right to review and approve certain matters set out herein differentiate between those hotels that are "Borrowing Base Hotels" and other hotels. "Borrowing Base Hotels," as defined in this Agreement, are (i) all Initial Hotels, and (ii) such Additional Hotels (specifically including the Supplemental Borrowing Base Hotels), if any, that all of the Banks, in their sole discretion, have accepted as a Borrowing Base Hotel. In order for a Hotel to be eligible for approval and qualification and in order to remain eligible for continued approval and qualification as a Borrowing Base Hotel, the Hotel (i) must be open and fully operational and must be owned in its entirety by the Borrower (rather than a Subsidiary of the Borrower), (ii) must be subject to a first-priority Lien in favor of the Agent, (iii) must be free and clear of all Liens and other encumbrances of any nature whatsoever, except for the first-priority Lien in favor of the Agent and except for encumbrances acceptable to all of the Banks; (iv) must be in substantial compliance with all applicable law and regulations including zoning, Accessibility Laws, and building codes, (v) must have access to public roadways and all required utilities, (vi) must not be subject to any environmental contamination that, in the reasonable opinion of Agent, materially adversely affects the leasing, operation, marketability or value of such Hotel, (vii) must be subject to a Permitted Operating Lease, under which neither the Borrower (as lessor) nor the Lessee shall be in default after the expiration of any applicable cure period set out in such Permitted Operating Lease; (viii) must be subject to a franchise agreement with an Approved Franchisor, (ix) at least 90% of all rooms in such Hotel must be in service other than rooms temporarily unavailable due to renovation, and (x) with the exception of Hotel #19 located in Secaucus, New Jersey, must not be subject to a Major Ground Lease. [Items (i) through (ix) are herein referred to as the "Qualifying Criteria."] The Banks shall have sole and absolute discretion in determining whether to accept the offered hotel as a "Borrowing Base Hotel" and, in their sole discretion, may reject a Hotel meeting the foregoing criteria. In that regard, the Banks can take into consideration any additional factors the Banks deem pertinent, in their sole and absolute discretion. Prior to determining whether to accept a hotel as a Borrowing Base Hotel, the Banks (i) shall be provid...

Borrowing Base Hotels. The Banks' right to review and approve certain matters set out herein differentiate between those hotels that are "Borrowing Base Hotels" and other hotels. "Borrowing Base Hotels," as defined in this Agreement, are (i) all Initial Hotels, and (ii) such Additional Hotels, if any, that all of the Banks, in their sole discretion, have accepted as a Borrowing Base Hotel. In order for a Hotel to be eligible for approval and qualification and in order to remain eligible for continued approval and qualification as a Borrowing Base Hotel, the Hotel (i) must be open and fully operational and must be owned in its entirety by the Borrower (rather than a