Common use of Waivers by Guarantor if Real Property Security Clause in Contracts

Waivers by Guarantor if Real Property Security. If the Guaranteed Obligations are or become secured by real property or an estate for years, Guarantor waives all rights and defenses that Guarantor may have because the Guaranteed Obligations are secured by real property. This means, among other things: a. TxDOT may collect from Guarantor without first foreclosing on any real or personal property collateral pledged by the DB Contractor. b. If TxDOT forecloses on any real property collateral pledged by the DB Contractor: (1) The amount of the Guaranteed Obligation may be reduced only by the price for which that collateral is sold at the foreclosure sale, even if the collateral is worth more than the sale price.