Common use of Due-on-Encumbrance Clause in Contracts

Due-on-Encumbrance. Seller has not modified the provisions of the Loan Documents which prohibit Borrower from doing either of the following: (i) mortgaging or otherwise encumbering the Property without the prior written consent of lender or the satisfaction of debt service coverage and other criteria specified in the Loan Documents, or (ii) carrying any additional indebtedness, except as set forth in the Loan Documents or in connection with trade debt and equipment financings incurred in the ordinary course of Borrower’s business.

Due-on-Encumbrance. Seller has not modified the provisions of the Loan Documents which prohibit Borrower from doing either of the following: (ia) mortgaging or otherwise encumbering the Property without the prior written consent of lender or the satisfaction of debt service coverage and other criteria specified in the Loan Documents, or (iib) carrying any additional indebtedness, except as set forth in the Loan Documents or in connection with trade debt and equipment financings incurred in the ordinary course of Borrower’s business.