Property/Signage Covenants Clause Samples

Property/Signage Covenants. The Borrowers and the Property Nominee shall not (i) Destroy, remove, attempt or permit to be removed or destroyed any of the buildings, plant, machinery or equipment comprising part of the Property or the Signage, except for the temporary removal of any such property for the purposes of repair, and provided further that the Borrowers may remove, dismantle, sell, exchange or otherwise dispose of any plant, machinery or equipment which has become obsolete, worn out or unserviceable if such plant, machinery or equipment is replaced by plant, machinery or equipment of at least equal performance and value or if such plant, machinery or equipment so dealt with is unnecessary for use in the operation of the Property, provided that such removal or other disposal does not adversely affect the Property or the Signage; (ii) make any material improvements, alterations, additions or deletions to any of the buildings or structures forming part of the Property other than as required pursuant to the Leases; (iii) enter into any Lease on terms which are not commercially prudent; (iv) except in the ordinary course of business and where it would be commercially prudent to do so, terminate or forfeit or take any action to terminate or forfeit any Lease or permit or suffer to exist anything that would allow a tenant under a Lease to terminate or forfeit its Lease, or accept any surrender of or reduce or discount the rent payable under any Major Lease; (v) except in the ordinary course of business and where it would be commercially prudent to do so, amend, modify, waive or otherwise release any of the rights or obligations of a tenant under any Lease in any material respect; or (vi) make any payments under any management agreements relating to the Property or the Signage to any Affiliate or any Person that is not acting at Arm’s Length with the Borrower, in each case at any time during which a Default or Event of Default exists.