Excepted Encumbrances Clause Samples
The Excepted Encumbrances clause defines which existing liens, easements, restrictions, or other burdens on a property are permitted to remain in place after a transaction, such as a sale or mortgage. In practice, this clause lists specific encumbrances—like utility easements, zoning restrictions, or recorded covenants—that the buyer or lender agrees to accept and that will not be considered breaches of title. Its core function is to clarify which encumbrances are acceptable, thereby allocating risk and preventing disputes over minor or previously disclosed title issues.
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Excepted Encumbrances. The Company reserves the right, without any consent, vote or other action by holders of any series of bonds subsequent to the Twenty-second Series or by holders of bonds of the Twenty-first Series with an Issue Date subsequent to November 1, 2016, (A) to delete the definition of “Excepted Encumbrances” in Section 6 of the Mortgage, as amended and supplemented, and
Excepted Encumbrances. The Company reserves the right, without any consent, vote or other action by holders of bonds of the Forty-first Series, the Forty-second Series, or of any subsequent series, to amend the Mortgage, as heretofore amended and supplemented, as follows: To amend Section 6 of the Mortgage to replace the definition of “Excepted Encumbrances” with substantially the following:
Excepted Encumbrances. The Company reserves the right, without any consent, vote or other action by holders of bonds of the Thirty-eighth Series, or of any other subsequent series, to amend the Indenture, as heretofore amended and supplemented, as follows: To amend Section 1.06 of the Indenture to read substantially as follows:
Excepted Encumbrances. The holders of a majority in principal amount of the bonds Outstanding under the Indenture having consented to the amendment set forth in Section 1 of Article II of the Seventy-seventh Supplemental Indenture and in Section 1 of Article II of the Seventy-eighth Supplemental Indenture, the Company hereby exercises its right to amend Section 6 of the Mortgage to read substantially as follows: