Common use of ENCUMBRANCES AND LIENS Clause in Contracts

ENCUMBRANCES AND LIENS. a. The fee interest in the Leased Premises may not be encumbered by the Lessee for any purpose. b. Subject to the prior written consent by the City, which consent shall not be unreasonably withheld, conditioned, or delayed, Lessee may encumber this Agreement, its leasehold estate and its improvements thereon by deed of trust, leasehold mortgage, chattel mortgage or other security instrument to assure the payment of a promissory note or notes of Lessee, upon the express condition that the net proceeds of such loan or loans be devoted exclusively to the purpose of acquiring or developing the Leased Premises and the Initial Improvements thereon. c. In the event any such approved deed of trust, mortgage or other security-type instrument, should, at any time, be in default and be foreclosed, or transferred in lieu of foreclosure, the City will accept the approved mortgagee or beneficiary thereof as its new tenant under this Agreement with all the rights, privileges and duties granted and imposed in this Agreement, subject to the conditions set forth in Article 23 of this Agreement. d. Any default, foreclosure or sale pursuant to said deed of trust, leasehold mortgage or other security instrument, shall be invalid with respect to this Agreement without prior notice thereof to, and approval by, the City. Upon prior written approval by the City, said mortgagee or beneficiary may assign this Agreement to its nominee, if nominee is a reputable, professionally qualified and financially responsible person in the opinion of the City. Any deed of trust, leasehold mortgage or other security instrument shall be subject to all the terms, covenants and conditions of this Agreement and shall not be deemed to amend or alter any of the terms, covenants or conditions of this Agreement.

ENCUMBRANCES AND LIENS. a. A. The fee interest in the Leased Premises may not be encumbered by the Lessee for any purpose. b. B. Subject to the prior written consent by the City, which consent shall not be unreasonably withheld, conditioned, or delayed, Lessee may encumber this Agreement, its leasehold estate and its improvements thereon by deed of trust, leasehold mortgage, chattel mortgage or other security instrument to assure the payment of a promissory note or notes or other obligations of Lessee, upon the express condition that the net proceeds of such loan or loans be devoted exclusively to the purpose of acquiring or developing the Leased Premises and the Initial Improvements thereon, provided, however, that nothing contained herein shall be construed as a limitation on Lessee’s or any of Lessee’s corporate affiliate’s, ability to borrow funds or enter into finance transactions in the ordinary course of business and which may incidentally subject Lessee’s interest in the Leased Premises to a security interest. c. C. In the event any such approved deed of trust, mortgage or other security-type instrument, should, at any time, be in default and be foreclosed, or transferred in lieu of foreclosure, the City will accept the approved mortgagee or beneficiary thereof as its new tenant under this Agreement with all the rights, privileges and duties granted and imposed in this Agreement, subject to the conditions set forth in Article 23 24 of this Agreement. d. D. Any default, foreclosure or sale pursuant to said deed of trust, leasehold mortgage or other security instrument, shall be invalid with respect to this Agreement without prior notice thereof to, and approval by, the City. Upon prior written approval by the City, said mortgagee or beneficiary may assign this Agreement to its nominee, if nominee is a reputable, professionally qualified and financially responsible person in the opinion of the City. Any deed of trust, leasehold mortgage mortgage, or other security instrument shall be subject to all the terms, covenants covenants, and conditions of this Agreement and shall not be deemed to amend or alter any of the terms, covenants covenants, or conditions of this Agreement. E. Except as provided in Article 26, Section A above, Lessee agrees that it shall pay directly, or cause to be paid, all costs and expenses for work done and materials delivered to the Leased Premises and improvements at Lessee's request for improvement to the Leased Premises. Lessee shall keep the Leased Premises free and clear of all mechanic's or material men’s liens or any other liens on account of any work done on the Leased Premises at Lessee's request. Lessee agrees to and shall indemnify, and hold the City of Bismarck free from and harmless against all liability, loss, damage, cost, attorney's fees (where allowable by law) and all other expenses on account of claims of lien of laborers or material men, or others, for work performed or materials or supplies furnished to Lessee for use on the Leased Premises.

ENCUMBRANCES AND LIENS. a. The fee interest in the Leased Premises may not be encumbered by the Lessee LESSEE for any purpose. b. Subject to the prior written consent by the CityLESSOR, which consent shall not be unreasonably withheld, conditioned, or delayed, Lessee LESSEE may encumber this Agreement, its leasehold estate and its improvements thereon by deed of trust, leasehold mortgage, chattel mortgage or other security instrument to assure the payment of a promissory note or notes of LesseeLESSEE, upon the express condition that the net proceeds of such loan or loans be devoted exclusively to the purpose of acquiring purchasing the business operations or developing the Leased Premises and the Initial Improvements improvements thereon. c. In the event any such approved deed of trust, mortgage or other security-type instrument, should, at any time, be in default and be foreclosed, or transferred in lieu of foreclosure, the City LESSOR will accept the approved mortgagee or beneficiary thereof as its new tenant under this Agreement with all the rights, privileges and duties granted and imposed in this Agreement, subject to the conditions set forth in Article 23 of this Agreement. d. Any defaultforeclosure to said deed of trust, foreclosure leasehold mortgage or other security instrument, shall be invalid with respect to this Agreement without prior notice thereof to the LESSOR. Any sale of assets and assignment of this Agreement pursuant to said deed of trust, leasehold mortgage or other security instrument, shall be invalid with respect to this Agreement without prior notice thereof to, and approval by, the CityLESSOR. Upon prior written The LESSOR’S inquiry regarding its approval by the City, said mortgagee or beneficiary may assign of an assignment of this Agreement shall be limited to its nominee, if nominee is a reputable, professionally qualified and financially responsible person in the opinion financial fitness of the Cityproposed assignee and the appropriateness of the proposed use of Leased Premises (recognizing that it is public property). Such approval shall not be unreasonably withheld. Any deed of trust, leasehold mortgage or other security instrument shall be subject to all the terms, covenants and conditions of this Agreement and shall not be deemed to amend or alter any of the terms, covenants or conditions of this Agreement. e. LESSEE shall keep the Leased Premises free and clear of all mechanic's or material men's liens or any other liens on account of any work done on the Leased Premises at LESSEE’S request. LESSEE agrees to and shall indemnify, and hold the City of Bismarck free from and harmless against all liability, loss, damage, cost, attorney's fees (where allowable by law) and all other expenses on account of claims of lien of laborers or material men, or others, for work performed or materials or supplies furnished to LESSEE for use on the Leased Premises.