Defective Interest definition

Defective Interest means

Defective Interest as used herein shall mean:

Defective Interest means that portion of the Interests (as determined in accordance with Section 7.03(c)) affected by a Title Defect or that Buyer is otherwise entitled under Sections 7.02 or 7.04 to treat as a Defective Interest, and of which Seller has been given notice by Buyer prior to September 23, 1996, (the "DEFECT NOTICE DATE"), except as provided hereinafter in this Section 7.03(a). Any notice of any Defective Interest shall be in writing and shall include: (i) a description of the Defective Interest, (ii) the specific basis for the defect that Buyer believes causes such Interest to be a Defective Interest, and (iii) the amount by which Buyer has determined the value of the Defective Interest has been reduced and the computations and information upon which Buyer's determination is based. Buyer shall be deemed to have waived all Title Defects and any other defect to any Interest of which Seller has not been given such notice prior to the Defect Notice Date. If Seller (i) disagrees that a Defect Adjustment or Exclusion Adjustment is warranted; (ii) disagrees that the matter giving rise to such claims is uncured, or (iii) disagrees with the amount of the related Defect Adjustment claimed by Buyer in any notice given in accordance with this Section 7.03(a), then Seller, at its option, may remove the defective property from the sale, attempt to cure the defect at Seller's sole cost and expense, agree to a mutually acceptable purchase price reduction or terminate this Agreement without liability to Buyer except for return of the Performance Deposit, without interest, provided that Seller may not terminate this Agreement unless the aggregate value of Title Defects exceeds twenty percent (20%) of the Preliminary Purchase Price;

Examples of Defective Interest in a sentence

• If Seller receives notice of such exercise prior to Closing, Seller shall give Purchaser notice thereof in accordance with Section 3.4(a) prior to the Closing, in which event the property affected by such preferential purchase right shall be treated as a Defective Interest.

• Such notice shall be in writing and shall include a description of the Defective Interest, the reason Buyer believes such portion of the Assets to be a Defective Interest, and the amount, not to exceed its Allocated Value, by which Buyer believes the value of the affected portion of the Assets is reduced due to the Defective Interest.

• Thus, industry should not have to build expensive new containment structures until the standard is finally determined.” Id.; see also Natural Res.

• If Seller gives timely notice that it disagrees that a Defective Interest asserted by Buyer exists, then Seller and Buyer shall meet prior to the Closing Date and attempt to resolve all such disagreements.

• On or before the Defect Notice Date, Buyer shall advise Seller of any Notice of Defective Interest.

More Definitions of Defective Interest

Defective Interest means a PGR Lease affected by a Title Defect that reduces the Allocated Value of the affected PGR Lease by more than One Hundred Fifty Thousand Dollars ($150,000.00).

Defective Interest means a PGR Lease affected by a Title Defect that reduces the Allocated Value of the affected PGR Lease by more than One Hundred Fifty Thousand Dollars ($150,000.00). Exhibit 10.17

Defective Interest means:

Defective Interest has the meaning set forth in Section 9.2(a).

Defective Interest means an Asset (i.e., a line item on Exhibit B or B-1) affected by a Title Defect that reduces the Allocated Value of the affected Asset by more than $5,000.00. The amount by which the Allocated Value of a Defective Interest has been reduced by a Title Defect (the "Defect Value") shall be calculated pursuant to subsection 4.2(d). For purposes of this Section 4.2(a), "Threshold Value" shall mean that the total Defect Values for all Defective Interests reduces the Allocated Value of the affected Asset(s) by more than $100,000 in the aggregate for all affected Assets. Buyer shall not be entitled to give notice pursuant to Section 4.2(b) or be entitled to adjustments pursuant to Section 4.2(d) unless the Threshold Value has been reached or exceeded.

Defective Interest is defined in Section 4.2(a).

Defective Interest means a Well, Well Location or Other Asset affected by a Title Defect that reduces the Allocated Value of the affected Well, Well Location or Other Asset by more than $20,000 (the “Individual Title Defect Threshold”). For purposes hereof, a “Title Defect” means any lien, encumbrance, adverse claim, encroachment, irregularity, defect in or objection to title, excluding Permitted Encumbrances, that alone or in combination with other defects renders Seller’s title to a Well, Well Location or Other Asset less than Defensible Title.