Authorization to Direct Sublease Payments Clause Samples
The 'Authorization to Direct Sublease Payments' clause allows a party, typically the landlord, to instruct a subtenant to make rental payments directly to them rather than to the original tenant. In practice, this means that if the original tenant subleases the premises, the landlord can require the subtenant to pay rent or other amounts owed under the sublease directly to the landlord, especially in cases where the original tenant defaults or as otherwise specified in the lease agreement. This clause ensures the landlord can secure payment and maintain control over rent collection, thereby reducing the risk of missed or misdirected payments.
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Authorization to Direct Sublease Payments. Sublandlord hereby acknowledges that Sublandlord's failure to pay the Rent and other sums owing by Sublandlord to Master Landlord under the Master Lease will cause Subtenant to incur damages, costs and expenses not contemplated by this Sublease, especially in those cases where Subtenant has paid sums to Sublandlord hereunder which correspond in whole or in part to the amounts owing by Sublandlord to Master Landlord under the Master Lease. Accordingly, Subtenant shall have the right to pay all Rent and other sums owing by Subtenant to Sublandlord hereunder for those items which also are owed by Sublandlord to Master Landlord under the Master Lease directly to Master Landlord on the following terms and conditions:
(a) Subtenant reasonably believes that Sublandlord has failed to make any payment required to be made by Sublandlord to Master Landlord under the Master Lease and Sublandlord fails to provide adequate proof of payment within ten (10) business days after Subtenant's written demand requesting such proof.
(b) Subtenant shall not prepay any amounts owing by Subtenant without the consent of Sublandlord.
(c) Subtenant shall provide to Sublandlord concurrently with any payment to Master Landlord reasonable evidence of such payment.
(d) If Sublandlord notifies Subtenant that it disputes any amount demanded by Master Landlord, Subtenant shall not make any such payment to Master Landlord unless Master Landlord has provided a three-day notice to pay such amount or forfeit the Master Lease. Any sums paid directly by Subtenant to Master Landlord in accordance with this Paragraph shall be credited toward the amounts payable by Subtenant to Sublandlord under this Sublease. In the event Subtenant tenders payment directly to Master Landlord in accordance with this Paragraph and Master Landlord refuses to accept such payment, Subtenant shall have the right to deposit such funds in an account with a national bank for the benefit of Master Landlord and Sublandlord, and the deposit of said funds in such account shall discharge Subtenant's obligation under this Sublease to make the payment in question.
Authorization to Direct Sublease Payments. Tenant hereby irrevocably authorizes and directs Subtenant to pay to Landlord Rent which is due and unpaid as of any date on or after the delivery by Landlord of a written notice (“Payment Notice”) demanding payment of Rent and stating that either (i) a default exists (after notice and the expiration of the applicable cure period in the Master Lease) in the performance or observance of Tenant’s obligations under the Master Lease, or (ii) Tenant has failed to timely perform or observe an obligation under the Master Lease and Landlord is legally prevented from issuing a notice of default. Tenant agrees that Subtenant shall have the right to rely upon any such Payment Notice from Landlord, and that Subtenant shall pay Rent to Landlord without any obligation or right to inquire as to whether such default exists and notwithstanding any notice or claim from Tenant to the contrary. Tenant shall have no right or claim against Subtenant for any such Rent so paid by Subtenant to Landlord.
Authorization to Direct Sublease Payments. Subtenant shall have the right to pay all rent and other sums owing by Subtenant to Sublandlord hereunder for those items which also are owed by Sublandlord to Landlord under the Master Lease directly to Landlord only upon receipt of a copy of a written demand for such payment by Subtenant made to Sublandlord by Landlord. Notwithstanding the foregoing, (i) Subtenant shall not prepay any amounts owing by Sublandlord without the consent of Sublandlord, (ii) Subtenant shall provide to Sublandlord concurrently with any payment to Landlord reasonable evidence of such payment, and (iii) if Sublandlord notifies Subtenant that it disputes any amount demanded by Landlord, Subtenant shall not make any such payment to Landlord unless Landlord has provided a notice to pay such amount or forfeit the Master Lease. Any sums paid directly by Subtenant to Landlord in accordance with this paragraph shall be credited toward the amounts payable by Subtenant to Sublandlord under this Sublease. In the event Subtenant tenders payment directly to Landlord in accordance with this paragraph and Landlord refuses to accept such payment, Subtenant shall have the right to deposit such funds in account with a national bank for the benefit of Landlord and Sublandlord, and the deposit of said funds in such account shall discharge Subtenant's obligation under this Sublease to make the payment in question.
Authorization to Direct Sublease Payments. Ariba hereby irrevocably authorizes and directs Interwoven to pay to Moffett the Net Rents as identified in any written notice from Moffe▇▇ ("▇▇t Rent Notice") identifying the amount of Net Rent and s▇▇▇▇▇▇ that either (i) a default exists (after notice and the expiration of the applicable cure period in the Master Lease) in the performance of Ariba's obligations under the Master Lease, or (ii) Ariba has failed to timely perform or observe an obligation under the Master Lease and Moffett is legally prevented from issuing a notice of default. Ariba ▇▇▇▇▇▇ that Interwoven shall have the right to rely upon any such Net Rent Notice from Moffett, and that Interwoven shall pay the specified amount of Net R▇▇▇ ▇▇ Moffett without any obligation or right to inquire as to whether suc▇ ▇▇▇▇▇lt exists and notwithstanding any notice or claim from Ariba to the contrary. Ariba shall have no right or claim against Interwoven for any such Net Rent so paid by Interwoven. Moffett agrees to apply any such payments to Ariba's obligations und▇▇ ▇▇▇ Master Lease.
Authorization to Direct Sublease Payments. Sublessee shall have the right to pay all rent and other sums owing by Sublessee to Sublessor hereunder for those items which are also owed by Sublessor to Lessor under the Master Lease directly to Lessor if Sublessor has failed to make any payment required to be made by Sublessor to Lessor under the Master Lease and Sublessor fails to provide adequate proof of payment within two (2) business days after Sublessee's written demand requesting such proof.
Authorization to Direct Sublease Payments. Sublessor hereby ----------------------------------------- acknowledges that Sublessor's failure to pay the rent and other sums owing by Sublessor to Master Lessor under the Master Lease will cause Sublessee to incur damages, costs and expenses not contemplated by this Sublease, especially in those cases where Sublessee has paid sums to Sublessor hereunder which correspond in whole or in part to the amounts owing by Sublessor to Master Lessor under the Master Lease. Accordingly, during any period in which Sublessor is in default in its obligation to pay rent and other sums due under the Master Lease, Sublessee shall have the right to pay all rent and other sums owing by Sublessee to Sublessor hereunder for those items which are also owed by Sublessor to Master Lessor under the Master Lease directly to Master Lessor. Any sums paid directly to Master Lessor in accordance with this Paragraph shall be credited toward the amounts payable by Sublessee to Sublessor under this Sublease.
Authorization to Direct Sublease Payments. Upon notice to ▇▇▇▇▇▇, ▇▇▇▇▇▇ hereby authorizes and directs Subtenant to pay to Landlord the rent due under the Sublease which is due and unpaid as of any date on or after the delivery by Landlord of a written notice (“Payment Notice”) demanding payment of such rent and providing the new payee information, and stating that a Sublessor Default exists. Tenant agrees that Subtenant shall have the right to rely upon any such Payment Notice from Landlord (with notice to Tenant), and that Subtenant shall pay such rent to Landlord (in accordance with the new payee information set forth in the Payment Notice) without any obligation or right to inquire as to whether such default exists and notwithstanding any notice or claim from Tenant to the contrary. Tenant shall have no right or claim against Subtenant for any such rent so paid by Subtenant to Landlord.
Authorization to Direct Sublease Payments. Tenant hereby irrevocably authorizes and directs Subtenant, upon receipt of any written notice from the Master Landlord stating that a default exists (after notice and the expiration of the applicable cure period in the Master Lease) in the performance of Tenant’s obligations under the Master Lease, to pay to Master Landlord the rents and other sums due and to become due under the Sublease. Tenant agrees that Subtenant shall have the right to rely upon any such statement and request from Master Landlord, and that Subtenant shall pay such rents and other sums to Master Landlord without any obligation or right to inquire as to whether such default exists and notwithstanding any notice or claim from Tenant to the contrary. Tenant shall have no right or claim against Subtenant for any such rents so paid by Subtenant. Master Landlord agrees to apply any such payments to Tenant’s obligations under the Master Lease.
Authorization to Direct Sublease Payments. Subtenant shall have the right to pay all rent and other sums owing by Subtenant to Sublandlord hereunder for those items which also are owed by Sublandlord to Landlord under the Lease directly to Landlord, provided Subtenant has direct knowledge that Sublandlord has failed or shall fail to make any payment required to be made by Sublandlord to Landlord under the Lease and Sublandlord fails to provide adequate proof or assurance of payment within ten (10) business days after Subtenant’s written demand requesting such proof. Subtenant shall provide to Sublandlord concurrently with any payment to Landlord reasonable evidence of such payment. Any sums paid directly by Subtenant to Landlord in accordance with this paragraph shall be credited toward the amounts payable by Subtenant to Sublandlord under this Sublease.
Authorization to Direct Sublease Payments. Ariba hereby irrevocably authorizes and directs Motorola to pay to ▇▇▇▇▇▇▇ the rent due under the Sublease as identified in any written notice from ▇▇▇▇▇▇▇ (“Rent Notice”) identifying the amount of such rent and stating that either (i) a default exists (after notice and the expiration of the applicable cure period in the Master Lease) in the performance of Ariba’s obligations under the Master Lease, or (ii) Ariba has failed to timely perform or observe an obligation under the Master Lease and ▇▇▇▇▇▇▇ is legally prevented from issuing a notice of default. Ariba agrees that Motorola shall have the right to rely upon any such Rent Notice from ▇▇▇▇▇▇▇, and that Motorola shall pay the specified amount of rent to ▇▇▇▇▇▇▇ without any obligation or right to inquire as to whether such default exists and notwithstanding any notice or claim from Ariba to the contrary. Ariba shall have no right or claim against Motorola for any such rent so paid by Motorola. ▇▇▇▇▇▇▇ agrees to apply any such payments to Ariba’s obligations under the Master Lease.