Covenants of the Lender. (a) The Lender hereby covenants to Borrower that it will not exercise any rights, including rights exercisable upon the occurrence of an Event of Default, that it has arising from or as a result of this Credit Agreement or any related agreement to cause Borrower or any Subsidiary of Borrower or any Permitted Related Owner to (i) enter into a lease or lease amendment that either (A) provides for payments that are based, directly or indirectly (including through sub-leasing), upon the net "income or profits" of any person (as defined in Section 856(d) (2) of the Code) or (B) requires Borrower or any Subsidiary of Borrower or any Permitted Related Owner to provide a service to a tenant, other than through an independent contractor (as defined in Section 856(d)(2) of the Code), where the provision of such service by Borrower or any of its Subsidiaries or any Permitted Related Owner would cause rents received by the Borrower or any of its Subsidiaries to fail to be "rents from real property" under Section 856(d)(2) of the Code, (ii) engage in a new line of business which (A) is unrelated to the development or leasing of real property and (B) would create a substantial risk, as a result of its generation of income not described in Section 856(c)(2) or (c)(3) of the Code, that Borrower would fail to qualify as a REIT under the Code or (iii) acquire an asset that would cause Borrower to fail to satisfy the asset test of Section 856(c)(5) of the Code; provided, however, that the foregoing covenants of this Section 5.04(a) shall not (x) preclude the Lender from collecting amounts due to the Lender under this Credit Agreement or from foreclosing on any property securing such indebtedness or (y) be deemed to have been breached or violated by the Lender as a result of any act or action (including, without limitation, the execution of a lease) made, done or taken by any receiver for any property of any Loan Party (including a receiver appointed at the request of the Lender) unless a motion to compel such act or action was made by the Lender to the court which appointed such receiver.
(b) The Lender agrees to use reasonable efforts to preserve the confidentiality of any Confidential Information received by it from the Borrower except as required by law or court order.
(c) The Lender shall execute and deliver a non-disturbance agreement substantially in the form of Exhibit C hereto (with such changes as the Lender may reasonably request) in connection with any lease appro...
Covenants of the Lender. The Lender will, at the request of the Borrower, provide information and formal declarations as required by applicable laws, regulations and policies in connection with this Agreement or the rules and policies of the Canadian Venture Exchange.
Covenants of the Lender. The Lender hereby covenants in favour of the Borrower that he will cause all necessary steps and proceedings to be taken to permit the debt security to be duly and regularly transferred to the Borrower effective the Closing Date.
Covenants of the Lender. As of the Effective Date and through the Term of this Agreement:
Covenants of the Lender. The Lender agrees and covenants that, unless, in each case, a Sub-Loan Event of Default shall have occurred and be continuing, it will not take, and it will not permit any Person lawfully claiming through or under it to take, any action inconsistent with Lessee’s rights under the Lease or any other Basic Document to which Lessee is a party, or otherwise through its own actions or failure to observe its obligations hereunder or under any other Basic Document or in any way interfere with or interrupt the quiet enjoyment of the use, operation and possession of the Aircraft, the Airframe or any Engine by Lessee.
Covenants of the Lender. The Lender hereby covenants with the Borrower that:
Covenants of the Lender. The Lender hereby covenants and agrees for the benefit of the Debtor as follows:
1. So long as Lessee is not in default of any of its obligations under the Lease, the interest of the Lender in the Lease and the Equipment shall be subject and subordinate to Lessee's leasehold estate in the Equipment and the Lender will not disturb Lessee's quiet use and possession of the Equipment.
2. The Lender shall, upon receipt of payments of Base Monthly Rentals from Lessee, immediately apply such payments towards the satisfaction of principal and interest then due hereunder.
3. So long as Lessee is not then in default under the Lease and provided the Debtor is not in default under this Note and Security Agreement, the Lender shall pay over to the Debtor within twenty (20) days of receipt, and the Debtor may receive and retain notwithstanding any subsequent default hereunder, (a) all sums received from the Lessee in payment of Base Monthly Rentals due under the Lease to the extent such sums exceed the installment of principal and interest then due hereunder and (b) any payments made by the Lessee pursuant to its indemnification obligations under the Lease as compensation to the Debtor for costs, charges or losses incurred by the Debtor. Such sums shall be forwarded to the Debtor at American Finance Group, Inc./FUNC, P.O. Box 60581, Charlotte, NC 28260 ATTN: Lease Oxxxxxxxxx xx xxxxxxxxx xx xxxx xxxxxxx xs debtor may direct.
4. The Debtor shall have the right to pay and perform for the account of the Lessee any obligation of the Lessee under the Lease (other than the payment of Base Monthly Rentals or sums due upon the occurrence of a casualty or other loss to any of the Equipment), in which case the Lender agrees that for purposes of the default provision of this Note and Security Agreement an Event of Default shall be deemed not to have occurred on account of Lessee's nonperformance of the obligation if the Debtor so pays or performs such obligation within the period required under the Lease. In the event the Debtor makes payments to the Lender on the account of Lessee, the Debtor shall be subrogated to the rights of the Lender with respect to such sums and, if any default has occurred and is continuing under the Lease, shall not collect such sums from the Debtor until each such default has been cured.
Covenants of the Lender. Section 10.1. Transfer of Lender's Interest............................ 43 Section 10.2.
Covenants of the Lender. Until this Agreement has been terminated and is of no further force and effect, the Lender will:
Covenants of the Lender. 7.1 The Lender, through the Series A Director as its agent, will use reasonable care in the custody and preservation of the Collateral in its possession. The parties further agree that such care as the Lender gives to the safekeeping of its own property of like kind will constitute reasonable care of the Collateral when in the Lender’s possession; provided, however, that neither the Lender nor the Series A Director as its agent will be required to make any presentment, demand or protest, or give any notice or need to take any action to preserve any rights of any prior party or any other person in connection with the Obligations or with respect to the Collateral.
7.2 Neither the Lender nor the Series A Director as its agent will be responsible for or have any liability for the form, legal sufficiency, genuineness, or legal effect of any signature, description, guaranty, instruction, or document related to the Collateral.
7.3 Each Borrower agrees that neither the Lender nor the Series A Director as its agent will in any way or manner be liable or responsible for any diminution in the value of the Collateral resulting from the sale or other disposition of the Collateral at such Borrower’s request, or from the failure of the Lender or the Series A Director to sell or consent to the sale, liquidation, reinvestment or other disposition of the Collateral, or for any act or default by any bailee, forwarding agency, transfer agent or any person whomsoever, in connection with the Collateral.
