Common use of UNAPPROVED TRANSFER Clause in Contracts

UNAPPROVED TRANSFER. Any sale, conveyance, transfer, disposition, alienation, hypothecation, leasing (except in the ordinary course of business) or further encumbrancing of a Project, or any portion thereof or any interest therein, by any Borrower, other than any conveyance of a portion of the unimproved land associated with such Project which is in excess of what is needed for such Project (which conveyance is permitted), or a sale, conveyance, transfer, disposition, alienation, hypothecation or encumbrancing of any legal or equitable interest in a Borrower or Homestead in violation of the Loan Documents shall be an Event of Default as of the date of such transfer, without any right to cure. In the case of a permitted conveyance of excess land, as hereinbefore provided, Lender shall, upon request of Homestead, execute a partial release, releasing the lien of any Security Documents applicable to such excess land.