Covenants Regarding Material Contracts Sample Clauses

Covenants Regarding Material Contracts. (a) Borrower will not, and will not permit any Facility Operator or Property Manager to, enter into any Material Contract, unless that approved by Lender or unless such Material Contract provides that it is terminable upon not more than 30 days’ notice by Borrower, or if Borrower is not a party to the Material Contract, the Facility Operator or Property Manager and their respective successors and assigns, without the necessity of establishing cause and without payment of a penalty or termination fee or extra charge. (b) Borrower will (or if Borrower is not a party thereto, will cause each Facility Operator and each Property Manager, as applicable, to) fully perform all of its obligations under each Material Contract, and Borrower will not (and Borrower will not permit a Facility Operator or Property Manager to) enter into, terminate or amend, modify, assign or otherwise encumber its interest in any Material Contract without the prior written approval of Lender. If Borrower, a Facility Operator or Property Manager enters into any Material Contract in the future (with Lender’s consent thereto), Borrower will (or will cause the operator to), simultaneously with entering into the Material Contract, if requested by Lender (i) assign its rights under and interest in the Material Contract to Lender as additional security for the Indebtedness, and (ii) obtain and provide to Lender a consent to that assignment by the other party(ies) to the Material Contract. Both the assignment and the consent must be in a customary form acceptable to Lender in its discretion. 104. Section 6.25 is revised to read in its entirety as follows: