Subordination of Operating Lease Sample Clauses

The Subordination of Operating Lease clause establishes that the rights of the tenant under the operating lease are subordinate to the rights of certain third parties, typically lenders or future property owners. In practice, this means that if the property is sold or foreclosed upon, the lease may be subject to the interests of the new owner or lender, and the tenant may be required to recognize the new party as their landlord or, in some cases, risk termination of the lease. This clause is essential for protecting the interests of lenders and buyers by ensuring their claims take precedence over existing lease agreements, thereby facilitating property financing and transfers.
Subordination of Operating Lease. (a) Operator subordinates all contractual and statutory Liens (whether ▇▇▇▇▇▇ or inchoate) which Operator may be (or may become) entitled to assert against the Mortgaged Property or any other property of Borrower which is subject to a Lien in favor of Lender to all of the assignments and Liens securing the Loan contemplated by the Loan Documents (including any future amendments), and Operator fully and completely waives any and all rights that Operator may have, now or in the future (and to the extent permitted by law, the rights that Operator’s suppliers, and laborers may have now or in the future), to claim, directly or indirectly, a priority of Lien, in whole or in part, against or in the Mortgaged Property or any other property of Borrower which is subject to a Lien in favor of Lender over any assignments or Liens that Lender may claim against the Mortgaged Property or any other such property of Borrower under the Loan Documents (including any future amendments). This subordination will be self-operative and no further instrument of subordination will be required. However, in further confirmation of such subordination, Operator and Borrower will, promptly upon the request of ▇▇▇▇▇▇ execute, acknowledge and deliver to Lender such instruments as Lender reasonably requires. (b) Operator agrees that (i) any amounts payable to Operator by Borrower pursuant to the Operating Lease are and will be subordinated in right of payment to the prior payment in full of the Indebtedness, and (ii) the Operating Lease is and will be subject and subordinate in all respects to the Lien, terms, covenants and conditions of the Security Instrument and the other Loan Documents and to all advances heretofore made or which may hereafter be made pursuant to the Note, the Loan Agreement, the Security Instrument (including all sums advanced for the purposes of (x) protecting or further securing the Lien of the Security Instrument or the Loan Agreement, curing defaults by Borrower under the Security Instrument or the Loan Agreement or for any other purposes expressly permitted by the Security Instrument or the Loan Agreement, or (y) constructing, renovating, repairing, furnishing, fixturing or equipping the Mortgaged Property) or the other Loan Documents. (c) Without limiting the subordination or other provisions of this Agreement in any way, in the event of any conflict between the Operating Lease and the Loan Documents as to the rights to and/or disposition of any Awards or Insura...
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Subordination of Operating Lease. (a) The Operating Lease and all right, title and interest of Operating Lessee thereunder and in and to the Property or any portion thereof, if any, are and shall be subject and subordinate to the lien of the Deed of Trust, including, without limitation, any and all fees and reimbursable expenses and other sums payable to Operating Lessee under the Operating Lease. Operating Lessee hereby acknowledges that all provisions of the Operating Lease relating to the application of insurance proceeds and condemnation awards are subject to and junior and inferior to the terms and provisions of the Deed of Trust and the other Loan Documents, and the terms and provisions of the Deed of Trust and the other Loan Documents shall govern and control in the event of any conflict. The Operating Lease shall be considered a Lease (as such term is defined in the Deed of Trust) and subject to all the terms and conditions regarding a Lease contained in the Loan Documents. (b) Operating Lessee agrees that, upon a Foreclosure of the Deed of Trust, provided that the Operating Lease has not expired or otherwise been earlier terminated in accordance with its terms for reasons other than such Foreclosure, Operating Lessee shall attorn to any Subsequent Owner and shall remain bound by all of the terms, covenants and conditions of the Operating Lease, for the balance of the remaining term thereof (and any renewals thereof which may be effected in accordance with the Operating Lease) with the same force and effect as if such Subsequent Owner were the landlord under the Operating Lease and without the payment by such Subsequent Owner of any fees arising from such succession to the interests of Assuming Borrower. Such attornment shall be effective and self-operative as an agreement between Operating Lessee and Subsequent Owner without the execution of any further instruments on the part of any party; provided, however, that at Lender’s request, Operating Lessee shall execute a commercially reasonable instrument confirming such attornment. If any Subsequent Owner shall elect, for any reason whatsoever, to succeed to the interest of Assuming Borrower under the Operating Lease, without terminating the Operating Lease, such Subsequent Owner shall not be (i) liable for any act or omission of any prior landlord (including Assuming Borrower), (ii) subject to any offsets or defenses which Operating Lessee might have against any prior landlord (including Assuming Borrower), or (iii) liable for or bo...
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Subordination of Operating Lease that certain Subordination, Assignment and Security Agreement among Borrower, Tenant and Agent, on behalf of itself and the other Lenders, dated of even date herewith. Substitute Note(s) - as defined in Section 9.30. Survey - current as-built survey of the Property, certified to Agent by a Registered Land Surveyor, showing all existing Improvements, all easements affecting the Land and the points of access to the public road upon which the Land fronts and which is otherwise in compliance with Agent's survey requirements previously delivered to Borrower. Tax Escrow Account - an interest bearing account which Borrower is required to establish with Agent prior to the first date that any funds are required to be deposited in such account pursuant to the terms of this Agreement; which account shall be (i) funded and disbursed in accordance with the terms of Article 8 of the Mortgage and Section 9.3 hereof and (ii) pledged and assigned to Agent as additional security for the payment, performance and observance of the Obligations.
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Subordination of Operating Lease. Lender shall have received the original of the Subordination of Operating Lease executed and acknowledged by each of Borrower and Tenant, together with a true and complete copy of the Operating Lease certified by an Officer’s Certificate.
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Subordination of Operating Lease. Notwithstanding anything to the contrary in the Operating Lease, Operating Lessee acknowledges and agrees that the Operating Lease and any and all rights and interests of Operating Lessee thereunder and to the Premises (as defined in the Operating Lease) are and shall be in all respects subject and subordinate to the lien and security interests created under the Security Instrument and other Loan Documents, and to all renewals, extensions, increases, supplements, amendments, modifications and replacements of any of the foregoing and any advances made thereunder.
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Subordination of Operating Lease. Lender shall have received the original of the Subordination of Operating Lease, executed by Operating Lessee.
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Related to Subordination of Operating Lease

  • Operating Lease (i) Each Borrower shall (a) promptly perform and observe all of the covenants required to be performed and observed by it under the Operating Leases and do all things necessary to preserve and to keep unimpaired its material rights thereunder; (b) promptly notify Lender of any material default under any Operating Lease of which it is aware; (c) promptly deliver to Lender a copy of any notice of default or other material notice under any Operating Lease delivered to any Operating Lessee by Borrower; (d) promptly give notice to Lender of any notice or information that Borrower receives which indicates that an Operating Lessee is terminating its Operating Lease or that any Operating Lessee is otherwise discontinuing its operation of the applicable Individual Property; and (e) promptly enforce the performance and observance of all of the material covenants required to be performed and observed by the Operating Lessee under the applicable Operating Lease. (ii) If at any time, (A) an Operating Lessee shall become insolvent or a debtor in a bankruptcy proceeding or (B) Lender or its designee has taken title to an Individual Property by foreclosure or deed in lieu of foreclosure, has become a mortgagee-in-possession, has appointed a receiver with respect to the applicable Individual Property or has otherwise taken title to such Individual Property, Lender shall have the absolute right to (and Borrower and Operating Lessee shall reasonably cooperate and not in any way hinder, delay or otherwise interfere with Lender’s right to), immediately terminate the applicable Operating Lease under and in accordance with the terms of the applicable Subordination, Attornment and Security Agreement. (iii) Borrower shall not, without the prior written consent of Lender, which consent shall not be unreasonably withheld: (a) surrender, terminate or cancel any Operating Lease or otherwise replace any Operating Lessee or enter into any other operating lease with respect to any Individual Property, provided, however, at the end of the term of each Operating Lease, the applicable Borrower may renew such Operating Lease or enter into a replacement Operating Lease with Operating Lessee on substantially the same terms as the expiring Operating Lease except that Lender shall have the right to approve any material change thereto; (b) reduce or consent to the reduction of the term of any Operating Lease; or (c) enter into, renew, amend, modify, waive any provisions of, reduce Rents under, or shorten the term of any Operating Lease.

  • SUBORDINATION OF LEASE This Agreement and Tenant's interest hereunder are and shall be subordinate, junior and inferior to any and all mortgages, liens or encumbrances now or hereafter placed on the Premises by Landlord, all advances made under any such mortgages, liens or encumbrances (including, but not limited to, future advances), the interest payable on such mortgages, liens or encumbrances and any and all renewals, extensions or modifications of such mortgages, liens or encumbrances.

  • Payment of Leasehold Obligations Each Borrower shall at all times pay, when and as due, its rental obligations under all leases under which it is a tenant, and shall otherwise comply, in all material respects, with all other terms of such leases and keep them in full force and effect and, at Agent’s request will provide evidence of having done so.

  • Operating Leases Incur any obligation to pay rent under an operating lease in any Fiscal Year if to do so would result in the aggregate obligation of Borrower and its Subsidiaries to pay rent under all operating leases in that Fiscal Year to exceed $4,000,000.

  • Subordination Agreement Each of (i) the subordination of interest payments to the Noteholders of the Class B Notes to the payment of any First Priority Principal Payment to the Noteholders of the Class A Notes and (ii) the subordination of interest payments to the Noteholders of the Class C Notes to the payment of any Second Priority Principal Payment to the Noteholders of the Class A Notes and the Class B Notes under Section 8.2(c) is a subordination agreement within the meaning of Section 510(a) of the Bankruptcy Code.