Common use of Protection Against Liens Clause in Contracts

Protection Against Liens. Borrower and Manager shall pay and discharge or bond all claims for labor, materials and services furnished in connection with construction of the Required Improvements, diligently file a valid notice of completion upon completion of the Required Improvements, diligently file a valid notice of cessation in the event of a cessation of labor for a period of 30 days or more, and take all actions reasonably required to prevent the assertion of claims of Liens against the Property. Borrower and Manager irrevocably appoint, designate and authorize Lender as their agent (such agency being coupled with an interest) with the authority (but no obligation) to file any notice of completion or cessation of labor or any other notice relating to claims of Liens that Lender deems advisable to protect its interests under the Loan Documents. If any stop notice or claim is asserted against Lender by any Person furnishing labor, services, equipment or materials to the Required Improvements, upon demand by Lender, Borrower or Manager shall take such action as Lender may reasonably require to release Lender from any obligation or liability with respect to such stop notice or claim, including (i) if the claim is being contested in good faith by appropriate proceedings, obtaining a bond or other security, in form, substance and amount reasonably satisfactory to Lender, or (ii) payment of such claim. If either Borrower or Manager fails to take such action, Lender may, in its discretion, file an interpleader action requiring all claimants to interplead and litigate their respective claims, and in any such action Lender shall be released and discharged from all obligations with respect to any funds deposited in court.

Protection Against Liens. Borrower and Manager shall pay Pay and discharge or bond all claims for labor, materials labor performed and material and services furnished in connection with construction of the Required ImprovementsSNF, to diligently file record or procure the recordation of a valid notice of completion completion, if applicable, upon completion of the Required Improvementsconstruction, to diligently file record or procure for recordation of a valid notice of cessation cessation, if applicable, in the event of a cessation of labor labor, on the work of the SNF for a continuous period of 30 thirty (30) days or more, and to take all actions reasonably required other steps necessary to prevent forestall the assertion of claims of Liens or liens either against the PropertyLand or the Improvements or any part thereof or right or interest appurtenant thereto or of claims against Lender or the Loan proceeds. Borrower and Manager irrevocably appointshall give Lender written notice within ten (10) days of Borrower’s receipt of notice that a mechanic’s lien has been filed, designate and authorize Lender as their agent (such agency being coupled along with an interest) with a copy of the authority (but no obligation) recorded lien. Nothing herein contained shall require Borrower to file pay any notice of completion or cessation of labor or any other notice relating to claims of Liens that Lender deems advisable to protect its interests under the Loan Documents. If any stop notice or claim is asserted against Lender by any Person furnishing for labor, servicesmaterials or services which Borrower, equipment or materials to the Required Improvements, upon demand by Lender, Borrower or Manager shall take such action as Lender may reasonably require to release Lender from any obligation or liability with respect to such stop notice or claim, including (i) if the claim is being contested in good faith disputes and which Borrower, at its own expense, is currently and diligently contesting; provided, however, that not later than ten (10) days after the notice of the filing of any claim or lien against the Land and/or the Improvements which is disputed or contested by appropriate proceedingsBorrower, obtaining Borrower shall either (a) record or cause to be recorded a surety bond sufficient to release said claim or lien and promptly give notice of such recordation to the lienholder or claimant, or (b) make other security, in form, substance and amount reasonably arrangements therefor satisfactory to Lender. Lender shall not be required (a) to extend the Maturity Date by reason of Borrower’s failure to pay such claims, or (iib) payment to make any disbursements of such claim. If either Borrower the proceeds of the Loan until any mechanic’s or Manager fails to take such action, Lender may, in its discretion, file an interpleader action requiring all claimants to interplead and litigate their respective claims, and in any such action Lender shall be released and discharged from all obligations with respect to any funds deposited in courtmaterialmen’s lien claims have been waived or insured over by Lender’s title insurer.

Protection Against Liens. Borrower and Manager shall pay Pay and discharge or bond all claims for labor, materials labor performed and material and services furnished in connection with construction of the Required ImprovementsCCRC, to diligently file record or procure the recordation of a valid notice of completion completion, if applicable, upon completion of the Required Improvementsconstruction, to diligently file record or procure for recordation of a valid notice of cessation cessation, if applicable, in the event of a cessation of labor labor, on the work of the CCRC for a continuous period of 30 thirty (30) days or more, and to take all actions reasonably required other steps necessary to prevent forestall the assertion of claims of Liens or liens either against the PropertyLand or the Improvements or any part thereof or right or interest appurtenant thereto or of claims against Lender or the Loan proceeds. Borrower and Manager irrevocably appointshall give Lender written notice within ten (10) days of Borrower’s receipt of notice that a mechanic’s lien has been filed, designate and authorize Lender as their agent (such agency being coupled along with an interest) with a copy of the authority (but no obligation) recorded lien. Nothing herein contained shall require Borrower to file pay any notice of completion or cessation of labor or any other notice relating to claims of Liens that Lender deems advisable to protect its interests under the Loan Documents. If any stop notice or claim is asserted against Lender by any Person furnishing for labor, servicesmaterials or services which Borrower, equipment or materials to the Required Improvements, upon demand by Lender, Borrower or Manager shall take such action as Lender may reasonably require to release Lender from any obligation or liability with respect to such stop notice or claim, including (i) if the claim is being contested in good faith disputes and which Borrower, at its own expense, is currently and diligently contesting; provided, however, that not later than ten (10) days after the notice of the filing of any claim or lien against the Land and/or the Improvements which is disputed or contested by appropriate proceedingsBorrower, obtaining Borrower shall either (a) record or cause to be recorded a surety bond sufficient to release said claim or lien and promptly give notice of such recordation to the lienholder or claimant, or (b) make other security, in form, substance and amount reasonably arrangements therefor satisfactory to Lender. Lender shall not be required (a) to extend the Maturity Date by reason of Borrower’s failure to pay such claims, or (iib) payment to make any disbursements of such claim. If either Borrower the proceeds of the Loan until any mechanic’s or Manager fails to take such action, Lender may, in its discretion, file an interpleader action requiring all claimants to interplead and litigate their respective claims, and in any such action Lender shall be released and discharged from all obligations with respect to any funds deposited in courtmaterialmen’s lien claims have been waived or insured over by Lender’s title insurer.