Encumbrances Prohibited Clause Samples
The "Encumbrances Prohibited" clause serves to prevent a party from placing any legal claims, liens, or burdens on certain property or assets covered by the agreement. In practice, this means the party must not use the property as collateral for loans, grant security interests, or otherwise allow third parties to gain rights over it during the contract term. This clause ensures that the property remains free from competing claims, thereby protecting the other party’s interests and maintaining clear ownership or control.
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Encumbrances Prohibited. No Member or Assignee may Encumber all or any portion of its Interest (or any beneficial interest therein) unless (i) all of the Class A Members consent in writing thereto, which consent may be given or withheld, or made subject to such conditions as are determined by all such Class A Members, in such Members’ sole discretion; and (ii) such Member or Assignee obtains all approvals required under applicable Gaming Regulations. Any purported Encumbrance which is not in accordance with this Agreement shall be, to the fullest extent permitted by law, null and void ab initio and, in addition to other rights and remedies at law and in equity, the other Class A Members and Class B Members shall be entitled to injunctive relief enjoining the prohibited action. The Members expressly acknowledge that damages at law would be an inadequate remedy for a breach or threatened breach of the foregoing restrictions.
Encumbrances Prohibited. To the extent that the underlying facts and circumstances are or were within its control, the Company shall not permit or suffer or allow its subcontractors to permit or suffer to exist any liens, claims, security interest, or encumbrances on the Facilities, (As defined in the Operations Agreement between City of ▇▇▇▇▇ Heights and United Water NACO) which do not already exist as of the commencement of the initial term of operation.
Encumbrances Prohibited. To the extent that the underlying facts and circumstances are or were within its control, the Company shall not permit or suffer or allow its subcontractors to permit or suffer to exist any liens, claims, security interest, or encumbrances on the Facilities, which do not already exist as of the commencement of the initial term of operation.