Common use of Prohibition of Liens Clause in Contracts

Prohibition of Liens. None of the Borrowers shall create, assume, incur or suffer to exist any mortgage, pledge, encumbrance, security interest, lien or charge of any kind upon any of its property, now owned or hereafter acquired, or acquire or agree to acquire any kind of property under conditional sales or other title retention agreements (other than those reflected in the Financial Statements); provided, however, that the foregoing restrictions shall not prevent a Borrower from: (a) Incurring liens for taxes, assessments or governmental charges or levies which shall not at the time be due and payable or can thereafter be paid without penalty or are being contested in good faith by appropriate proceedings diligently conducted and with respect to which it has created adequate reserves; (b) Making pledges or deposits to secure obligations under workers' compensation laws or similar legislation; or (c) Granting liens or security interests in favor of the Lender; or (d) Granting liens or security interests in the Line of Credit Collateral in favor of the Line of Credit Lender.