Springing Recourse Event Clause Samples

Springing Recourse Event. Notwithstanding anything to the contrary in this Agreement or any of the other Loan Documents, (A) neither Agent nor any Lender shall be deemed to have waived any right which Agent or any Lender may have under Section 506(a), 506(b), 1111(b) or any other provisions of the Bankruptcy Code to file a claim for the full amount of the Obligations or to require that all collateral shall continue to secure all of the Obligations owing to Agent and Lenders in accordance with the Loan Documents, and (B) the Obligations shall be fully recourse to Borrowers and Guarantor in the event of (each, a “Springing Recourse Event”):

Springing Recourse Event. The agreement contained in Section 10.1 and 10.2 to limit the personal liability of the Obligated Parties shall become null and void and be of no further force and effect in the event: (a) the Property or any part thereof or any interest therein, or any interest in the Fee Holder, the Beneficial Interest Holder, the General Partner, or the Guarantor shall be transferred in violation or in breach of the Loan Documents; or (b) Fee Holder or the Beneficial Interest Holder shall be the subject of, or the Property or any part thereof shall become an asset in: (i) a voluntary bankruptcy or insolvency proceeding filed by Fee Holder, the Beneficial Interest Holder, the General Partner, or the Guarantor; or (ii) an involuntary bankruptcy or insolvency proceeding which is not dismissed within sixty (60) days of filing, provided, however, that this Section 10.3(b) shall not apply if an involuntary bankruptcy is filed by Lender or if the involuntary bankruptcy filing was initiated by a third party creditor independent of any collusive action or consent by: (a) Fee Holder (unless solely as a result of the actions of the Limited Partners acting alone on behalf of the Fee Holder); (b) the Beneficial Interest Holder (unless solely as a result of the actions of the Limited Partners acting alone on behalf of the Beneficial Interest Holder), (c) the General Partner, or (d) the Guarantor; or (iii) or if Fee Holder or the Beneficial Interest Holder shall make a voluntary assignment for the benefit of creditors. Provided, further, that the foregoing limitations on personal liability with respect to the Loan shall not impair the validity of the indebtedness secured by Lender’s collateral or the lien on or security interest in the collateral or the right of Lender as Lender or secured party to foreclosure and/or enforce the mortgage lien or security interest or other interest in the collateral or any party thereof after default. In the event any person, whether Fee Holder or Beneficial Interest Holder, Beneficial Interest Holder’s partner or member (or its partner or member) or other person or entity shall have indemnified all or part of any aspect of the Loan or shall have indemnified Lender by separate written guarantee, indemnification agreement, or otherwise, none of the foregoing limitations on the personal liability of the Fee Holder or the Obligated Parties for payment of the Loan shall modify, diminish or discharge the personal liability of any such person under any such ...

Springing Recourse Event. Promptly upon becoming aware thereof, notice of a Springing Recourse Event.

Springing Recourse Event. Notwithstanding anything to the contrary in this Agreement, the Note or any of the other Loan Documents, (A) neither the Agent nor the Lender shall be deemed to have waived any right which the Agent or the Lender may have under Section 506(a), 506(b), 1111(b) or any other provisions of the U.S. Bankruptcy Code to file a claim for the full amount of the Obligations secured by any Mortgage or to require that all collateral shall continue to secure all of the Obligations in accordance with the Loan Documents, and (B) notwithstanding that the Loan is fully recourse to each Borrower, the Debt shall also be fully recourse to each Guarantor pursuant to the terms of the Guaranty of Recourse Obligations (i) in the event of: (a) any Borrower Party filing a voluntary petition under the Bankruptcy Code or any other Federal or state bankruptcy or insolvency law; (b) the filing of an involuntary petition against any Borrower Party under the Bankruptcy Code or any other Federal or state bankruptcy or insolvency law if and only if any Borrower Related Person solicited, acted in concert with, colluded with, conspired with or otherwise assisted the petitioning creditors in connection with such involuntary petition; (c) any Borrower Related Person consenting to, acquiescing in, or otherwise joining in any involuntary petition filed against any Borrower Party by any other Person under the Bankruptcy Code or any other Federal or state bankruptcy or insolvency law; (d) any Borrower Related Person making, consenting to, otherwise joining in or soliciting, colluding, conspiring or acting in concert with any others in furtherance of an application for the appointment of a custodian, liquidator, receiver or trustee for any Borrower Party or any portion of any Property; (e) any Borrower Party making an assignment for the benefit of creditors; or (f) any Borrower Party admitting in writing in any legal proceeding its insolvency or inability to pay its debts as they become due; (ii) in the event of a breach of the covenant set forth in Section 4.1.31 hereof; (iii) if any Borrower Party fails to obtain the Agent’s prior written consent to (a) any Indebtedness of any Borrower for borrowed money in violation of this Agreement or (b) any Lien encumbering any Property or the Collateral or any indirect interest (of any form of ownership) in any Property, the Collateral or any Borrower (other than Permitted Encumbrances) if such Lien was filed by, or such filing was affirmatively approved or...