Common use of Mechanics’ Liens and Contest Thereof Clause in Contracts

Mechanics’ Liens and Contest Thereof. Borrower will not suffer or permit any mechanics’ lien claims to be filed or otherwise asserted against the Project and will promptly discharge the same in case of the filing of any claims for lien or proceedings for the enforcement thereof, provided, however, that Borrower shall have the right to contest in good faith and with reasonable diligence the validity of any such lien or claim provided that Borrower notifies Lender of its desire to do so in writing and posts a statutory xxxx xxxx that removes such lien from title to the Project within 30 days of the earlier of written notice by Borrower to Lender of the existence of such lien or written notice by Lender to Borrower of the existence of the lien. Lender will not be required to make any further disbursements of the proceeds of the Loan unless or until either (i) all mechanics’ lien claims have been removed, or completely bonded over, or insured over by the Title Insurer, or (ii) Lender, at its sole option, elects to restrict disbursements to reserve sufficient sums to pay 150% of all such lien claims. In the event either Borrower shall fail to discharge any such lien or prosecute such contest as set forth above, or such lien is not otherwise fully reserved for or bonded over as set forth above, Lender may, at its election in its sole and absolute discretion, cause such lien to be satisfied and released or otherwise provide security to the Title Insurer to indemnify over such lien. Any amounts so expended by Lender, including premiums paid or security furnished in connection with the issuance of any surety company bonds, shall be deemed to constitute disbursement of the proceeds of the Loan hereunder owing to Lender by Borrower. In settling, compromising or discharging any claims for lien, Lender shall not be required to inquire into the validity or amount of any such claim.

Mechanics’ Liens and Contest Thereof. Borrower will not suffer or permit any mechanics’ ' lien claims to be filed or otherwise asserted against the any Project and will promptly discharge the same in case of the filing of any claims for lien or proceedings for the enforcement thereof, provided, however, that Borrower Owner shall have the right to contest in good faith and with reasonable diligence the validity of any such lien or claim provided that Borrower notifies notify Lender of its Owner's desire to do so in writing and posts a statutory xxxx xxxx that removes such lien from title to the applicable Project within 30 twenty (20) days of the earlier of written notice by Borrower to Lender of the existence of such lien or written notice by Lender to Borrower of the existence of the lien. Lender will not be required to make any further disbursements of the proceeds of the Loan unless or until either (i) all any mechanics’ ' lien claims have been removed, or completely bonded over, or insured over by the Title Insurer, or (ii) Lenderremoved and Lender may, at its sole option, elects to restrict disbursements to reserve sufficient sums to pay 150% of all such lien claims. In the event either Borrower or Owner shall fail to discharge any such lien or fail to prosecute such contest as set forth above, or such lien is not otherwise fully reserved for or bonded over as set forth above, Lender may, at its election in its sole and absolute discretion, cause such lien to be satisfied and released or otherwise provide security to the Title Insurer to indemnify over such lien. Any , and any amounts so expended by Lender, including premiums paid or security furnished in connection with the issuance of any surety company bonds, shall be deemed to constitute disbursement of the proceeds of the Loan hereunder owing to Lender by Borrower. In settling, compromising or discharging any claims for lien, Lender shall not be required to inquire into the validity or amount of any such claim.

Mechanics’ Liens and Contest Thereof. Borrower will not suffer or permit any mechanics’ ' lien claims to be filed or otherwise asserted against the Project and will promptly discharge the same in case of the filing of any claims for lien or proceedings for the enforcement thereof, provided, however, that Borrower shall have the right to contest in good faith and with reasonable diligence the validity of any such lien or claim provided that Borrower notifies Lender of its desire to do so in writing and posts a statutory xxxx lxxx xxxx that removes such lien from title to the Project within 30 days of the earlier of written notice by Borrower to Lender of the existence of such lien or written notice by Lender to Borrower of the existence of the lien. Lender will not be required to make any further disbursements of the proceeds of the Loan unless or until either (i) all mechanics’ ' lien claims have been removed, or completely bonded over, or insured over by the Title Insurer, or (ii) Lender, at its sole option, elects to restrict disbursements to reserve sufficient sums to pay 150% of all such lien claims. In the event either Borrower shall fail to discharge any such lien or prosecute such contest as set forth above, or such lien is not otherwise fully reserved for or bonded over as set forth above, Lender may, at its election in its sole and absolute discretion, cause such lien to be satisfied and released or otherwise provide security to the Title Insurer to indemnify over such lien. Any amounts so expended by Lender, including premiums paid or security furnished in connection with the issuance of any surety company bonds, shall be deemed to constitute disbursement of the proceeds of the Loan hereunder owing to Lender by Borrower. In settling, compromising or discharging any claims for lien, Lender shall not be required to inquire into the validity or amount of any such claim.

Mechanics’ Liens and Contest Thereof. The Borrower will not suffer or permit any mechanics’ lien claims to be filed or otherwise asserted against the Project and will promptly discharge the same in case of the filing of any claims for lien or proceedings for the enforcement thereof, ; provided, however, that the Borrower shall have the right to contest in good faith and with reasonable diligence the validity of any such lien or claim provided that the Borrower notifies Lender notify Administrative Agent of its desire to do so in writing and posts post a statutory xxxx xxxx that removes such lien from title to the Project within 30 twenty (20) days of the earlier of written notice by the Borrower to Lender Administrative Agent of the existence of such lien or written notice by Lender Administrative Agent to the Borrower of the existence of the lien. Lender Lenders will not be required to make any further disbursements of the proceeds of the Term Loan unless or until either (ia) all mechanics’ lien claims have been removed, or completely bonded banded over, or insured over by the Title Insurer, or (iib) LenderAdministrative Agent, at its sole option, elects to restrict disbursements to reserve sufficient sums to pay 150% of all such lien claims. In the event either the Borrower shall fail to discharge any such lien or prosecute such contest as set forth abovelien, or such lien is not otherwise fully reserved for or bonded over as set forth above, Lender Administrative Agent may, at its election in its sole and absolute discretion, cause such lien to be satisfied and released or otherwise provide security to the Title Insurer to indemnify over such lien. Any amounts so expended by LenderAdministrative Agent or Lenders, including premiums paid or security furnished in connection with the issuance of any surety company bonds, shall be deemed to constitute disbursement of the proceeds of the Term Loan hereunder owing to Lender by Borroweror, at Administrative Agent’s election, the Revolving Loan. In settling, compromising or discharging any claims for lien, Lender Administrative Agent shall not be required to inquire into the validity or amount of any such claim.

Mechanics’ Liens and Contest Thereof. Borrower Borrowers will not suffer or permit any mechanics’ lien claims to be filed or otherwise asserted against the Project Projects and will promptly discharge the same in case of the filing of any claims for lien or proceedings for the enforcement thereof, provided, however, that Borrower Borrowers shall have the right to contest in good faith and with reasonable diligence the validity of any such lien or claim provided that Borrower notifies Borrowers notify Lender of its their desire to do so in writing and posts a statutory xxxx xxxx that removes such lien from title to the Project and, within 30 20 days of the earlier of written notice by Borrower Borrowers to Lender of the existence of such lien or written notice by Lender to Borrower Borrowers of the existence of the lien, either (i) post a statutory xxxx xxxx that removes such lien from title to the applicable Project, (ii) provide a letter of credit (in a form reasonably acceptable to Lender) or cash deposit in an amount sufficient to pay one hundred twenty-five percent (125%) of such lien claim or other security reasonably satisfactory to Lender to protect Lender’s interest and security should the contest be unsuccessful or (iii) cause such lien claim to be fully insured to the reasonable satisfaction of Lender by the Title Company that issued the Title Policy. Lender will not be required to make any further disbursements of the proceeds of the Loan unless or until either (i) all mechanics’ such mechanic’s lien claims have claim has been completely removed, or completely bonded over, insured or insured over by the Title Insureras to which a letter of credit or cash sufficient to pay one hundred twenty-five percent (125%) of such claim has been deposited with Lender or, or (ii) Lender, at its Borrowers’ sole option, Borrower elects to restrict disbursements from the Holdback to reserve sufficient sums to pay 150% amounts in excess of one hundred twenty-five percent (125%) of such lien claim (or all such lien claimsclaims being contested for which Borrowers have elected to proceed under this Section 4.2(c)). In the event either Borrower Borrowers shall fail to discharge any such lien or prosecute such contest as set forth above, or such lien is not otherwise fully reserved for or bonded over as set forth above, Lender may, at its election in its sole and absolute discretion, cause such lien to be satisfied and released or otherwise provide security to the Title Insurer to indemnify over such lien. Any amounts so expended by Lender, including premiums paid or security furnished in connection with the issuance of any surety company bonds, shall be deemed to constitute disbursement of the proceeds of the Loan hereunder owing to Lender by BorrowerBorrowers. In settling, compromising or discharging any claims for lien, Lender shall not be required to inquire into the validity or amount of any such claim.

Mechanics’ Liens and Contest Thereof. Borrower will not suffer or permit any mechanics’ lien claims to be filed or otherwise asserted against the Project and will promptly discharge the same in case of the filing of any claims for lien or proceedings for the enforcement thereof, provided, however, that Borrower shall have the right to contest in good faith and with reasonable diligence the validity of any such lien or claim provided that Borrower notifies Lender Administrative Agent of its desire to do so in writing and posts a statutory xxxx xxxx that removes such lien from title to the Project within 30 thirty (30) days of the earlier of written notice by Borrower to Lender Administrative Agent of the existence of such lien or written notice by Lender Administrative Agent to Borrower of the existence of the lien. Lender The Lenders will not be required to make any further disbursements of the proceeds of the Loan after the filing of such a lien (if such lien is in an amount greater than $25,000) unless or until either (i) all mechanics’ lien claims have been removed, or completely bonded over, or or, if such lien is in an amount less than $100,000, insured over by the Title Insurer, or (ii) Lenderif such lien shall not have been bonded, Administrative Agent, at its sole option, elects to restrict disbursements to reserve sufficient sums to pay 150% of all such lien claims. In the event either Borrower shall fail to discharge any such lien or prosecute such contest as set forth above, or such lien is not otherwise fully reserved for or bonded over as set forth above, Lender Administrative Agent on behalf of the Lenders may, at its election in its sole and absolute discretion, cause such lien to be satisfied and released or otherwise provide security to the Title Insurer to indemnify over such lien. Any amounts so expended by LenderAdministrative Agent, including premiums paid or security furnished in connection with the issuance of any surety company bonds, shall be deemed to constitute disbursement of the proceeds of the Loan hereunder owing to Lender the Lenders by Borrower. In settling, compromising or discharging any claims for lien, Lender neither Administrative Agent, nor the Lenders shall not be required to inquire into the validity or amount of any such claim.

Mechanics’ Liens and Contest Thereof. Borrower will not suffer or permit any mechanics’ ' lien claims to be filed or otherwise asserted against the any Project and will promptly discharge the same in case of the filing of any claims for lien or proceedings for the enforcement thereof, provided, however, that Borrower shall have the right to contest in good faith and with reasonable diligence the validity of any such lien or claim provided that Borrower notifies notify Lender of its desire to do so in writing and posts a statutory xxxx xxxx that removes such lien from title to the applicable Project within 30 twenty (20) days of the earlier of written notice by Borrower to Lender of the existence of such lien or written notice by Lender to Borrower of the existence of the lien. Lender will not be required to make any further disbursements of the proceeds of the Loan unless or until either (i) all any mechanics’ ' lien claims have been removed, or completely bonded over, or insured over by the Title Insurer, or (ii) Lenderremoved and Lender may, at its sole option, elects to restrict disbursements to reserve sufficient sums to pay 150% of all such lien claims. In the event either Borrower shall fail to discharge any such lien or fails to prosecute such contest as set forth above, or such lien is not otherwise fully reserved for or bonded over as set forth above, Lender may, at its election in its sole and absolute discretion, cause such lien to be satisfied and released or otherwise provide security to the Title Insurer to indemnify over such lien. Any , and any amounts so expended by Lender, including premiums paid or security furnished in connection with the issuance of any surety company bonds, shall be deemed to constitute disbursement of the proceeds of the Loan hereunder owing to Lender by Borrower. In settling, compromising or discharging any claims for lien, Lender shall not be required to inquire into the validity or amount of any such claim.