Common use of Transfer or Encumbrance of the Property Clause in Contracts

Transfer or Encumbrance of the Property. (a) Trustor acknowledges that Beneficiary has examined and relied on the creditworthiness and experience of Trustor in owning and operating the Property in agreeing to make the Loan, and that Beneficiary will continue to rely on Trustor's ownership of the Property as a means of maintaining the value of the Property as security for repayment of the Indebtedness. Trustor acknowledges that Beneficiary has a valid interest in maintaining the value of the Property so as to ensure that, should Trustor default in the repayment of the Indebtedness, Beneficiary can recover the Indebtedness by a sale of the Property. Trustor shall not, without the prior written consent of Beneficiary, sell, convey, alienate, mortgage, encumber, pledge or otherwise transfer the Property or any part thereof, or permit the Property or any part thereof to be sold, conveyed, alienated, mortgaged, encumbered, pledged or otherwise transferred.

Transfer or Encumbrance of the Property. (ab) Trustor acknowledges that (i) Beneficiary has examined and relied on the creditworthiness and experience of the principals of Trustor in owning and operating properties such as the Property in agreeing to make the Loan, and that (ii) Beneficiary will continue to rely on Trustor's ’s ownership of the Property as a means of maintaining the value of the Property as security for repayment of the Indebtedness. Trustor acknowledges that Debt, and (iii) Beneficiary has a valid interest in maintaining the value of the Property so as to ensure that, should Trustor default in the repayment of the IndebtednessDebt, Beneficiary can recover the Indebtedness Debt by a sale of the Property. Trustor shall not, without the prior written consent of Beneficiary, not sell, convey, alienate, mortgage, encumber, pledge or otherwise transfer the Property or any part thereof, or suffer or permit any Transfer to occur, other than a Permitted Transfer or a Transfer and Assumption in accordance with the Property or any part thereof to be sold, conveyed, alienated, mortgaged, encumbered, pledged or otherwise transferredterms of the Loan Agreement.