Common use of Creation or Existence of Liens Clause in Contracts

Creation or Existence of Liens. Borrower shall not create, assume or suffer to exist any mortgage, pledge, lien, charge or encumbrance on the Mortgaged Property without the prior approval of Lender, excluding only: (a) encumbrances in favor of the Lender; (b) deposits to secure payment of workmen’s compensation, unemployment insurance and similar benefits; (c) statutory liens, against which there are established reserves in accordance with generally accepted accounting principles, and which arise in the ordinary course of Borrower’s business and secure current obligations of Borrower which are not in default; (d) liens for property taxes not yet due; and (e) such matters reflected in the mortgagee policy of title insurance and in the Mortgage. Lender understands and approves Borrower recording on the Mortgaged Property: (i) one or more Final Plats (as defined below) of the Mortgaged Property which may contain grants of easements, dedications of right-of-way and other encumbrances necessary to create the subdivided Lots (as defined below); (ii) one or more Supplemental Declarations of Covenants, Conditions and Restrictions bringing the Mortgaged Property into the Lomas Encantadas Master Homeowners Association, Inc.; and (iii) one or more Notices of Levy in connection with the Lomas Encantadas Public Improvement District.

Creation or Existence of Liens. Borrower shall not create, assume or suffer to exist any mortgage, pledge, lien, charge or encumbrance on the Mortgaged Property without the prior approval of Lender, excluding only: (a) encumbrances in favor of the Lender; (b) deposits to secure payment of workmen’s compensation, unemployment insurance and similar benefits; (c) statutory liens, against which there are established reserves in accordance with generally accepted accounting principles, and which arise in the ordinary course of Borrower’s business and secure current obligations of Borrower which are not in default; (d) liens for property taxes not yet due; and (e) such matters reflected in the mortgagee policy of title insurance and in the Mortgage. Lender understands and approves Borrower recording on the Mortgaged Property: (i) one or more Final Plats (as defined below) of the Mortgaged Property which may contain grants of easements, dedications of right-of-way and other encumbrances necessary to create the subdivided Lots (as defined below); (ii) one or more Supplemental Declarations of Covenants, Conditions and Restrictions bringing the Mortgaged Property into the Lomas Encantadas Master Homeowners Association, Inc.Inc. and Subsidiary Declarations associated therewith; and (iii) one or more Notices of Levy in connection with the Lomas Encantadas Public Improvement District.

Creation or Existence of Liens. Borrower shall not create, assume or suffer to exist any mortgage, pledge, lien, charge or encumbrance on the Mortgaged Property without the prior approval of Lender, excluding only: (a) encumbrances in favor of the Lender; (b) deposits to secure payment of workmen’s compensation, unemployment insurance and similar benefits; (c) statutory liens, against which there are established reserves in accordance with generally accepted accounting principles, and which arise in the ordinary course of Borrower’s business and secure current obligations of Borrower which are not in default; (d) liens for property taxes not yet due; and (e) such matters reflected in the mortgagee policy of title insurance and in the Mortgage. Lender understands and approves Borrower recording on the Mortgaged Property: (i) one or more Final Plats (as defined below) of the Mortgaged Property which may contain grants of easements, dedications of right-of-way and other encumbrances necessary to create the subdivided Lots (as defined below)parcels; (ii) one or more Supplemental Declarations declarations of Covenantscovenants, Conditions conditions and Restrictions bringing restrictions applicable to the Mortgaged Property into which may include the Lomas Encantadas Master Homeowners Association, Inc.creation of a homeowner’s association and architectural review provisions; and (iii) one or more Notices private improvement covenants creating monthly levies on the residential lots for the reimbursement of Levy in connection with the Lomas Encantadas Public Improvement Districtcertain infrastructure costs and expenses.

Creation or Existence of Liens. Borrower shall not create, assume or suffer to exist any mortgage, pledge, lien, charge or encumbrance on the Mortgaged Property without the prior approval of Lender, excluding only: (a) encumbrances in favor of the Lender; (b) deposits to secure payment of workmen’s compensation, unemployment insurance and similar benefits; (c) statutory liens, against which there are established reserves in accordance with generally accepted accounting principles, and which arise in the ordinary course of Borrower’s business and secure current obligations of Borrower which are not in default; (d) liens for property taxes not yet due; and (e) such matters reflected in the mortgagee policy of title insurance and in the Mortgage. Lender understands and approves Borrower recording on the Mortgaged Property: (i) one or more Final Plats Plat (as defined below) of the Mortgaged Property which may contain grants of easements, dedications of right-of-way and other encumbrances necessary to create the subdivided Lots (as defined below)Lots; (ii) one or more Supplemental Declarations a declaration of Covenantscovenants, Conditions conditions and Restrictions bringing restrictions applicable to the Mortgaged Property into which includes the Lomas Encantadas Master Homeowners Association, Inc.creation of a homeowner’s association and architectural review provisions; and (iii) one or more Notices private improvement covenants creating monthly levies on the Lots for the reimbursement of Levy in connection with the Lomas Encantadas Public Improvement Districtcertain infrastructure costs and expenses.