Common use of Non-Recourse Liability Clause in Contracts

Non-Recourse Liability. Xxxxxx will be subrogated to any and all rights, superior title, liens, and equities owned or claimed by any owner or holder of any liens and debts outstanding immediately prior to execution, regardless of whether said liens or debts are acquired by Xxxxxx by assignment or are released by the holder thereof upon payment, and regardless of whether the lien established by this Security Instrument is held to be invalid. Xxxxxxxx agrees that any statute of limitations related to a cause of action or right to foreclose based on such subrogated rights, superior title, liens, and equities are tolled to the extent necessary until, at the earliest, a final adjudication by a court of last resort that the lien established by this Security Instrument is invalid. Xxxxxxxx further agrees that Xxxxxx will have the same rights and powers provided in Section 23 in connection with any such subrogated rights, superior title, liens, and equities as Lender has in connection with the lien established by this Security Instrument. Subject to the limitation of personal liability described below, each person who signs this Security Instrument is responsible for ensuring that all of Xxxxxxxx’s promises and obligations in the Note and this Security Instrument are performed. Borrower understands that Section 50(a)(6)(C), Article XVI of the Texas Constitution provides that the Note is given without personal liability against each owner of the Property and against the spouse of each owner unless the owner or spouse obtained this Extension of Credit by actual fraud. This means that, absent such actual fraud, Lender can enforce its rights under this Security Instrument solely against the Property and not personally against the owner of the Property or the spouse of an owner. If this Extension of Credit is obtained by such actual fraud, then, subject to Section 12, Borrower will be personally liable for the payment of any amounts due under the Note or this Security Instrument. This means that a personal judgment could be obtained against Borrower, if Xxxxxxxx fails to perform Xxxxxxxx’s responsibilities under the Note or this Security Instrument, including a judgment for any deficiency that results from Xxxxxx’s sale of the Property for an amount less than is owing under the Note, subjecting Borrower’s other assets to satisfaction of the debt. If not prohibited by Section 50(a)(6)(C), Article XVI of the Texas Constitution, this Section 25 will not impair in any way the lien of this Security Instrument or the right of Lender to collect all sums due under the Note and this Security Instrument or prejudice the right of Lender as to any covenants or conditions of the Note and this Security Instrument.

Non-Recourse Liability. Xxxxxx will Lender shall be subrogated to any and all rights, superior title, liens, liens and equities owned or claimed by any owner or holder of any liens and debts outstanding immediately prior to executionexecution hereof, regardless of whether said liens or debts are acquired by Xxxxxx Lender by assignment or are released by the holder thereof upon payment, and regardless of whether the lien established by this Security Instrument is held to be invalid. Xxxxxxxx agrees that any statute of limitations related to a cause of action or right to foreclose based on such subrogated rights, superior title, liens, and equities are hereby tolled to the extent necessary until, at the earliest, a final adjudication by a court of last resort that the lien established by this Security Instrument is invalid. Xxxxxxxx further agrees that Xxxxxx will shall have the same rights and powers provided in Section 23 Sections 21 and 22 of this Security Instrument in connection with any such subrogated rights, superior title, liens, and equities as Lender has in connection with the lien established by this Security Instrument. Subject to the limitation of personal liability described below, each person who signs this Security Instrument is responsible for ensuring that all of Xxxxxxxx’s promises and obligations in the Note and this Security Instrument are performed. Borrower understands that Section 50(a)(6)(C), Article XVI of the Texas Constitution provides that the Note is given without personal liability against each owner of the Property and against the spouse of each owner unless the owner or spouse obtained this Extension of Credit by actual fraud. This means that, absent such actual fraud, Lender can enforce its rights under this Security Instrument solely against the Property and not personally against the owner of the Property or the spouse of an owner. If this Extension of Credit is obtained by such actual fraud, then, subject to Section 12, Borrower will be personally liable for the payment of any amounts due under the Note or this Security Instrument. This means that a personal judgment could be obtained against BorrowerXxxxxxxx, if Xxxxxxxx fails to perform Xxxxxxxx’s responsibilities under the Note or this Security Instrument, including a judgment for any deficiency that results from Xxxxxx’s sale of the Property for an amount less than is owing under the Note, thereby subjecting Borrower’s other assets to satisfaction of the debt. If not prohibited by Section 50(a)(6)(C), Article XVI of the Texas Constitution, this Section 25 will 24 shall not impair in any way the lien of this Security Instrument or the right of Lender to collect all sums due under the Note and this Security Instrument or prejudice the right of Lender as to any covenants or conditions of the Note and this Security Instrument.