3.3 Waste.

• Jurisdiction: Arizona

Most lenders demand covenants in the loan documents to the effect that the borrower will neither commit waste nor suffer waste to be committed against the property. Waste is often classified as either “voluntary” or “permissive.” See G. Nelson & D. Whitman, Real Estate Finance Law (4th ed. 2001) at 164. Voluntary waste usually consists of activities such as physically destroying the building, excessive cutting of timber, or otherwise committing intentional acts that destroy the property. Id. Permissive waste, on the other hand, generally entails “failing to repair or allowing the property to fall into disrepair.” Id. See also Jowdy v. Guerin, 10 Ariz. App. 205, 457 P.2d 745 (1969); In re Evergreen Ventures, 147 B.R. 751 (Bankr. D. Ariz. 1992). While ordinary wear and tear may not necessarily constitute waste, the unchecked...