Common use of Nonrecourse Loan Clause in Contracts

Nonrecourse Loan. Subject to the provisions of this Section, and notwithstanding any provision of the Loan Documents other than this Section, the personal liability of Borrower, and of any general partner of Borrower, to pay the principal of and interest on the debt evidenced by the Note and any other agreement evidencing Borrower's obligations under the Note shall be limited to (a) the Collateral, (b) the personal property described in and pledged under any Loan Document other than this Instrument, and (c) the rents, profits, issues, products and income of the Property, including any received or collected by or on behalf of Borrower after an Event of Default. Except as provided in this Section, Lender shall not seek (a) any judgment for a deficiency against Borrower, any general partner or member of Borrower, or Borrower's successors or assigns, in any action to enforce any right or remedy under the Note, this Instrument or the other Loan Documents, or (b) any judgment on the Note except as may be necessary in any action brought under the Instrument to enforce the lien against the Property or any other Collateral. Notwithstanding the foregoing, Borrower and any general partner of Borrower shall be fully and personally liable for payment and performance of all obligations set forth in the Loan Documents, including the payment of all principal, interest, and other amounts under the Note, in the event of (i) the occurrence of an uncured default under Sections 15, 16 or 29 of this Instrument, or (ii) the occurrence of any condition or event described in Section 20 (except that in the event of involuntary proceedings described therein, neither Borrower nor any general partner of Borrower shall be fully and personally liable under this Section 26 unless either Borrower or any general partner of Borrower or any Person owning an interest (directly or indirectly) in Borrower or any general partner of Borrower consents to, aids, solicits, supports, or otherwise cooperates or colludes to cause such event or fails to contest such event).

Nonrecourse Loan. Subject to the provisions of this Section, and notwithstanding any provision of the Loan Documents other than this Section, the personal liability of Borrower, and of any general partner member of Borrower, to pay the principal of and interest on the debt evidenced by the Note and any other agreement evidencing Borrower's obligations under the Note shall be limited to (a) the Collateral, (b) the personal property described in and pledged under any Loan Document other than that this Instrument, and (c) the rents, profits, issues, products and income of the Property, including any received or collected by or on behalf of Borrower after an Event of Default. Except as provided in this Section, Lender shall not seek (a) any judgment for a deficiency against Borrower, any general partner or member of Borrower, or Borrower's successors or assigns, in any action to enforce any right or remedy under the Note, this Instrument or the other Loan Documents, or (b) any judgment on the Note except as may be necessary in any action brought under the Instrument to enforce the lien against the Property or any other Collateral. Notwithstanding the foregoing, Borrower, any member of Borrower and any general partner of Borrower guarantor or indemnitor shall be fully and personally liable liable, both jointly and severally for payment and performance of all obligations set forth in the Loan Documents, including the payment of all principal, interest, and other amounts under the Note, in the event of (i) the occurrence of an uncured default under Sections 15, 16 or 29 of this Instrument, or (ii) the occurrence of any condition or event described in Section 20 (except that in the event of involuntary proceedings described thereinfor which said Section 20 expressly provides time in which vacation or similar relief may be obtained, neither Borrower nor the same shall have no effect under this provision until the expiration of such the period of time expressly provided for in said Section 20 without the stated relief). Further, Borrower, any general partner of Borrower and any guarantor or indemnitor shall be fully personally liable, both jointly and personally liable severally in the amount of any loss, damage or cost resulting from the following: (a) fraud or intentional misrepresentation by Borrower in connection with obtaining the loan evidenced by the Note, (b) acts of waste, (c) insurance proceeds, condemnation awards, or other sums or payments attributable to the Property not applied in accordance with the provisions of the Loan Documents (except to the extent that Borrower did not have the legal right, because of a bankruptcy, receivership or similar judicial proceeding, to direct disbursement of such sums or payments), (d) all rents, profits, issues, products and income of the Property received or collected by or on behalf of Borrower after an Event of Default and not applied to payment of principal and interest due under this Section 26 unless either the Note, (including any received or collected by or on behalf of Borrower after an Event of Default, except to the extent that such application of such funds is prevented by bankruptcy, receivership, or similar judicial proceeding in which Borrower is legally prevented from directing the disbursement of such sums) and to the payment of actual and reasonable operating expenses of the Property, as they become due or payable, (e) misappropriation (including failure to turn over to Lender on demand following an Event of Default) of tenant security deposits and rents collected in advance, or of funds held by Borrower for the benefit of another party, (f) any transfer of all or any part of the Property, or any interest therein, or transfer of a beneficial interest in Borrower (if Borrower is not a natural person or persons but is a corporation, partnership, limited liability company, trust or other legal entity), or the incurrence of any subordinate financing, except as permitted in the Loan Documents, (g) failure by Borrower, any general partner of Borrower, or any indemnitor or guarantor to comply with the covenants, obligations, liabilities, warranties and representations contained in the Environmental Indemnity Agreement or otherwise pertaining to environmental matters, (h) in the event Lender has waived (or Borrower has failed to pay) the monthly collection for real and personal property taxes, assessments, insurance premiums, or ground rents, then failure by Borrower to pay any or all such taxes, assessments, premiums and rents, (i) in the event that Lender has waived (or Borrower has not complied with) the requirement for third party property management, then any management fee taken by Borrower or any Person owning principal or affiliate of Borrower after an interest Event of Default, or (directly or indirectlyj) the failure of any provision contained in Borrower those certain certificates given by the Borrower, Horizon (as defined in Section 29 below), and Horizon L.P. (as defined in section 29 below), in connection with the Nonconsolidation Opinion delivered by Winston & Xxxxxx, to be true and correct as of the date of issuance and to remain true and correct until such time as the Loan is paid in full. No provision of this Section shall (i) affect the enforcement of the Environmental Indemnity Agreement or any general partner guaranty or similar agreement executed in connection with the debt evidenced by the Note, (ii) release or reduce the debt evidenced by the Note, (iii) impair the lien of Borrower consents tothis Instrument, aids, solicits, supports(iv) impair the rights of Lender to enforce any provisions of this Instrument, or (v) limit Lender's ability to obtain a deficiency judgment or judgment on the Note or otherwise cooperates or colludes against Borrower to cause such event or fails the extent necessary to contest such event)obtain any amount for which Borrower may be liable in accordance with this Section.