Taxes, Assessments and Encumbrances. Borrower shall pay, or shall cause the Operating Lessee to cause the Manager to pay, prior to delinquency, all taxes, levies, charges and assessments, including assessments on appurtenant water stock, imposed by any public or quasi public authority or utility company which are (or if not paid, may become) a lien, encumbrance or charge against (each, a “Tax”, and collectively, “Taxes”) on all or part of the Property or any interest in it, or which may cause any decrease in the value of the Property or any part of it. Borrower shall not permit, and shall immediately discharge, any Tax (other than liens in favor of Lender created by the Loan Documents) on the Property which is not a Tax that has been approved by Lender in writing, and shall also pay when due each obligation secured by or reducible to a Tax which now or hereafter encumbers or appears to encumber all or part of the Property, whether the Tax is or would be senior or subordinate to the Mortgage. Notwithstanding the preceding sentence, Borrower shall have the right to contest in good faith and with due diligence the validity of any such Tax upon furnishing to Lender a bond covering such contested Tax in form, scope and substance satisfactory to Lender (and from a bonding company approved by Lender in its reasonable discretion) or by furnishing the title company issuing the Title Insurance Policy such security or indemnity as it may require to induce the title company to issue an endorsement to the Title Insurance Policy insuring against all applicable claims, liens or proceedings.
Taxes, Assessments and Encumbrances. The Property is currently tax exempt due to the ownership, occupancy and use by the Parties for public purpose. If applicable, Seller agrees that any taxes, assessments and encumbrances that will be a lien against the Property at Closing, whether or not those charges would constitute a lien against the Property at settlement, shall be satisfied of record by Seller. If Seller shall fail to 3 - Page 3 - Agreement of Purchase and Sale - Penumbra Xxxxx Building do so, City may pay any such tax, assessment, encumbrance or other charge and deduct an amount equal to any such payment from the Purchase Price of the Property. Regular real property taxes payable during the year in which Closing occurs and any rents or income applicable to the Property shall be prorated as of Closing. County shall work cooperatively with City to ensure the current tax exempt status continues to be applicable to the Property upon Closing.
Taxes, Assessments and Encumbrances
