Lender Audit Rights Sample Clauses
The Lender Audit Rights clause grants the lender the authority to review and inspect the borrower's financial records, operations, and compliance with loan agreements. In practice, this means the lender can request access to accounting books, conduct site visits, or engage third-party auditors to verify the borrower's financial health and adherence to covenants. This clause serves to protect the lender by ensuring transparency and enabling early detection of potential issues that could affect loan repayment.
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Lender Audit Rights. Lender and its agents have the right, upon prior written notice to Borrower (notice to be given unless an Event of Default exists), to examine the records, books and other papers which reflect upon Borrower's financial condition or pertain to the income, expense and management of the Property and to make copies and abstracts from such materials. Lender also shall have the right, from time to time (but, in the absence of an Event of Default existing, not more than annually) and upon prior notice to Borrower (notice to be given unless an Event of Default exists), to have an independent audit conducted of any of Borrower's financial information. Lender shall pay the cost of such audit unless Lender performed the audit following the occurrence of an Event of Default or if the results of Lender's audit disclose an error by more than ten percent (10%), in which case (and in addition to Lender's other remedies) Borrower shall pay the cost incurred by Lender with respect to such audit upon Lender's demand. Upon Borrower's failure to pay such amounts, and in addition to Lender's remedies for Borrower's failure to perform, the unpaid amounts shall be added to principal, shall bear interest at the Default Rate until paid in full, and payment of such amounts shall be secured by the Security Instrument and other collateral given to secure the Loan.
Lender Audit Rights. Lender and its agents and representatives shall have the right to inspect and audit all books and records of Owner pertaining to the statements, reports and information required under this Article VIII in order to obtain and verify such information as Lender deems necessary or appropriate. The cost of any and all such inspections and audits shall be paid by Owner. Provided no Event of Default has occurred and is continuing under this Agreement, (i) Lender shall give Owner reasonable notice prior to exercising its rights hereunder, and (ii) Lender shall not audit the books and records of Owner more frequently than one (1) time per calendar year.