INCHOATE LIENS Clause Samples
An inchoate lien clause defines the rights and interests associated with liens that have not yet fully matured or been perfected. In practice, this clause addresses situations where a party may have a potential claim to property or assets, such as when work has been performed or materials supplied but the formal steps to establish a lien have not been completed. For example, a contractor may have an inchoate lien on a property for unpaid work until the lien is officially filed. The core function of this clause is to clarify the status and treatment of such potential claims, thereby reducing uncertainty and allocating risk between parties regarding unresolved or pending liens.
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INCHOATE LIENS. If no Lien has been filed in any jurisdiction or agreed to, (i) claims and Liens for Taxes not yet due and payable, (ii) mechanic's Liens and materialman's Liens for services or materials and similar Liens incident to construction and maintenance of real property, in each case for which payment is not yet due and payable, (iii) landlord 's Liens for rental not yet due and payable, and (iv) Liens of warehousemen and carriers and similar Liens securing obligations that are not yet due and payable.
INCHOATE LIENS. If no Lien has been filed in any jurisdiction or agreed to, (i) claims and Liens for Taxes not yet due and payable or which are being contested in good faith and for which any reserves required by GAAP have been established, (ii) mechanic’s Liens and materialman’s Liens for services or materials and similar Liens incident to construction and maintenance of real property, in each case for which payment is not yet due and payable, or which are being contested in good faith and for which any reserves required by GAAP have been established, (iii) landlord ’s Liens for rents or leases incurred in the ordinary course of business, in each case which are not yet due and payable or which are being contested in good faith and for which any reserves required by GAAP have been established, and (iv) Liens of warehousemen and carriers and similar Liens which were incurred in the ordinary course of business, in each case for which payment is not yet due and payable, or which are being contested in good faith and for which any reserves required by GAAP have been established.
INCHOATE LIENS. Existing easements, rights of way and servitudes on the Mortgaged Properties as of the Closing Date and such future easements, rights of way and servitudes as GDB shall approve as to the Mortgaged Properties.
INCHOATE LIENS. If any construction, drilling, major repair (i.e., exceeding $100,000.00), recompletion or other similar activity has occurred on any lease to which the Subject Interests pertain where MOXY is operator within one hundred and eighty days prior to Closing, HES shall have received, prior to Closing, in form reasonably acceptable to HES, proof of payment for such activities and/or releases of inchoate and/or materialmen's liens with respect thereto.