Common use of TRANSFER AND ENCUMBRANCE OF PROPERTY Clause in Contracts

TRANSFER AND ENCUMBRANCE OF PROPERTY. (a) Borrower acknowledges that Lender has examined and relied on the creditworthiness and experience of Borrower in owning and operating properties such as the Properties in agreeing to make the Loan, and that Lender will continue to rely on Borrower's ownership of the Properties as a means of maintaining the value of the Properties as security for repayment of the Debt. Borrower acknowledges that Lender has a valid interest in maintaining the value of the Properties so as to ensure that, should Borrower default in the repayment of the Debt, Lender can recover the Debt by a sale of the Properties. Borrower shall not, without the prior written consent of Lender, in its sole discretion, sell, convey, alienate, mortgage, encumber, pledge or otherwise transfer the Properties or any part thereof, or permit the Properties or any part thereof to be sold, conveyed, alienated, mortgaged, encumbered, pledged or otherwise transferred subject to Permitted Encumbrances.