Common use of Recourse Obligation Clause in Contracts

Recourse Obligation. (a) This Agreement and the Obligations hereunder are fully recourse to the Borrower. Notwithstanding the foregoing, no recourse under or upon any obligation, covenant, or agreement contained in this Agreement shall be had against any officer, director, shareholder or employee of the Borrower or CESRRI except in the event of fraud or misappropriation of funds on the part of such officer, director, shareholder or employee. (b) Subject to the exceptions and qualifications set forth hereinbelow, the general and limited partners of Borrower and any Consolidated Subsidiary shall not be personally liable for the payment of the Obligations of the Borrower and any Consolidated Subsidiary respectively, and any judgment or decree in any action brought to enforce any Obligation shall be enforceable only against the Borrower and any Consolidated Subsidiary and the assets of Borrower and any Consolidated Subsidiary, and any such judgment or decree shall not be subject to execution upon or be a lien upon the assets of the general or limited partners of the Borrower other than their respective partnership interests in Borrower and any Consolidated Subsidiary. Notwithstanding the foregoing, the general partner of Borrower shall be fully and personally liable as general partner for the following: (i) the commission of fraud by the Borrower or any material misrepresentation made by the Borrower in connection with, arising out of, or in any way related or incidental to the application for or closing of this Agreement, the Notes or any advance made thereunder, or any of the Loan Documents executed or delivered in connection herewith or the transactions related hereto or thereto; and (ii) any fraudulent conveyance made by Borrower, CESRRI or any Subsidiary.

Recourse Obligation. (a) This Agreement and the Obligations hereunder are fully recourse to the Borrower. Notwithstanding the foregoing, no recourse under or upon any obligation, covenant, or agreement contained in this Agreement shall be had against any officer, director, shareholder or employee of the Borrower or CESRRI except in the event of fraud or misappropriation of funds on the part of such officer, director, shareholder or employee. (b) Subject to the exceptions and qualifications set forth hereinbelow, the general and limited partners of Borrower and any Consolidated Subsidiary shall not be personally liable for the payment of the Obligations of the Borrower and any Consolidated Subsidiary respectively, and any judgment or decree in any action brought to enforce any Obligation shall be enforceable only against the Borrower and any Consolidated Subsidiary and the assets of Borrower and any Consolidated Subsidiary, and any such judgment or decree shall not be subject to execution upon or be a lien upon the assets of the general or limited partners of the Borrower other than their respective partnership interests in Borrower and any Consolidated Subsidiary. Notwithstanding the foregoing, the general partner of Borrower shall be fully and personally liable as general partner for the following: (i) the commission of fraud by the Borrower or any material misrepresentation made by the Borrower in connection with, arising out of, or in any way related or incidental to the application for or closing of this Agreement, the Notes or any advance made thereunder, or any of the Loan Documents executed or delivered in connection herewith or the transactions related hereto or thereto; and (ii) any fraudulent conveyance made by Borrower, CESRRI or any Subsidiary. Nothing contained herein shall affect, reduce or otherwise limit the obligations of any Consolidated Subsidiary on the Guaranty furnished by any such party.