Tenant’s Right to Encumber Sample Clauses
The Tenant’s Right to Encumber clause grants the tenant the ability to use their leasehold interest as collateral or security for loans or other financial obligations. In practice, this means the tenant may assign, mortgage, or otherwise pledge their rights under the lease to a lender, often to secure financing for business operations or improvements to the leased premises. This clause is essential for tenants seeking flexibility in managing their financial affairs, as it enables them to leverage their leasehold interest, while also typically outlining any required landlord consent or conditions to protect the landlord’s interests.
POPULAR SAMPLE Copied 9 times
Tenant’s Right to Encumber. Tenant shall have the right, from time to time and at any time, without Landlord's consent or joinder, to encumber its interest in this Lease and the leasehold estate hereby created with one or more deeds of trust, mortgages, or other lien instruments to secure any borrowings or obligations of Tenant. Any such mortgages, deeds of trust, and/or other lien instruments, and the indebtedness secured thereby, provided that Landlord has been given notice thereof as set forth in Section 10.2, are herein referred to as "PERMITTED MORTGAGEES," and the holder or other beneficiary thereof are herein referred to as "PERMITTED MORTGAGEES."
Tenant’s Right to Encumber. Tenant may, at any time, encumber all or any portion of its interest in this Lease and the leasehold estate of Tenant in the Premises by a Leasehold Mortgage (as hereafter defined) provided that each Leasehold Mortgage complies with the terms and provisions of this Article 6. Each Leasehold Mortgage shall be a lien or mortgage on Tenant's interest in and to this Lease and the leasehold estate created hereby, but shall not be a lien on the fee interest of the Premises, Landlord's leasehold interest in the Premises, or any reversionary interest in the improvements located thereon. The Leasehold Mortgagee (as hereafter defined) shall not acquire by virtue a Leasehold Mortgage any greater rights to the Premises than Tenant has under this Lease. Landlord shall have no obligation under or to any such Leasehold Mortgagee.
Tenant’s Right to Encumber. Tenant may, at any time and from time to time during the term of this Lease, encumber by deed of trust or mortgage or other security instrument, all of Tenant’s interest under this Lease and the leasehold estate hereby created in Tenant (referred to in this Lease as a “Leasehold Encumbrance”) for any purpose or purposes with the consent of Landlord, which consent shall not be unreasonably withheld. The holder of any such Leasehold Encumbrance is referred to herein as a “Lender.” However, no Leasehold Encumbrance incurred by Tenant pursuant to this Section 13 shall, and Tenant shall not have power to incur any encumbrance that shall, constitute in any way a lien or encumbrance on the Landlord’s fee interest in the Leased Premises. Any Leasehold Encumbrance shall be subject to all covenants, conditions, and restrictions set forth in this Lease and to all rights and interests of Landlord, except as is otherwise provided in this Lease. Tenant shall give Landlord prior written notice of any Leasehold Encumbrance, together with a copy of any proposed security instrument evidencing the Leasehold Encumbrance, which documentation shall be subject to Landlord’s reasonable review and approval.
Tenant’s Right to Encumber. Tenant may encumber all or any portion of its interest in this Lease and the leasehold estate created by this Lease by a deed of trust, mortgage or other security instrument (collectively, a “Leasehold Mortgage”), provided that such Leasehold Mortgage, shall be a lien only on Tenant’s interest in and to this Lease and the leasehold estate created hereby. For purposes of this Section 35, the holder of a Leasehold Mortgage or anyone claiming by or through or under such holder shall be referred to as a “Leasehold Mortgagee”.
Tenant’s Right to Encumber. 9.01. Tenant may, at any time and from time to time, encumber the leasehold interest, by deed of trust, mortgage, or other security instrument, without obtaining Landlord’s consent, but no such encumbrance constitutes a lien on Landlord’s fee title. The indebtedness secured by the encumbrance will at all times be and remain inferior and subordinate to all the conditions, covenants, and obligations of this Lease and to all Landlord’s rights under this Lease. References in this Lease to “Lender” refer to any person or entity to whom Tenant has encumbered its leasehold interest.
Tenant’s Right to Encumber. Tenant may, at any time and from time to time during the Term, with the written consent of Landlord’s Lender, which consent shall not be unreasonably withheld, mortgage, collaterally assign or otherwise encumber any interest that Tenant has in this Lease or in the improvements located on the Premises (the “Leasehold Estate”) to any nationally recognized bank, insurance company or other institutional lender or such other lender as may be approved by Landlord (such approval not to be unreasonably withheld), herein called “Tenant’s Mortgagee” by deed of trust or mortgage or other security instrument (as applicable, the “Security Instrument” or “Mortgage”) as security for an indebtedness (“Debt”), on the further condition, with respect to all permitted financings, that:
(a) The Security Instrument and all rights acquired under it shall, by its express terms, be subject to each and all of the covenants, conditions and restrictions stated in this Lease and to all rights and interests of Landlord;
(b) Tenant shall deliver to Landlord (i) a complete and correct copy of the Security Instrument and all related promissory notes, loan agreements, security agreements, indemnity agreements, guarantees, financing statements and other loan documents executed by Tenant or for Tenant’s benefit in connection therewith (the “Loan Documents”), each as fully executed and delivered, within ten (10) business days after the execution thereof, and (ii) a complete and correct of the recorded Security Instrument, conformed by the recorder to show the date or recordation and other recording information, within five business days after the date of recordation;
(c) The Security Instrument shall expressly provide that any proceeds from fire or extended coverage insurance shall be used to repair or rebuild the damaged or destroyed improvements on the Premises or as otherwise expressly provided herein;
(d) The Security Instrument shall contain a provision that all notices of default under the Loan Documents must be sent to Landlord and Tenant and that Landlord shall have fifteen (15) business days in which to cure any default after the time for Tenant to cure it has expired (provided that if Landlord requires possession of the Premises in order to cure the default, then Landlord shall have, in addition to such 15 day period, such further time as is needed to terminate Tenant’s right to possession of the Premises), and neither Landlord’s right to cure any default nor any exercise of such ri...
Tenant’s Right to Encumber. Tenant may at any time and from time to time, with Landlord’s consent, approval or authorization, hypothecate, mortgage, pledge or encumber Tenant’s leasehold estate created by this lease, and/or Tenant’s rights hereunder, by mortgage, deed of trust or other security agreement or instrument; provided, however, that no such encumbrance shall attach to or constitute a lien on the fee estate of Landlord in the leased land, and shall expressly acknowledge that all improvements constructed on the Premises shall become the property of Landlord, free and clear of all encumbrances, upon expiration of the term or sooner termination of this lease as set forth in section 15E. above. Landlord shall subordinate its fee interest provided that Landlord is granted in the encumbrance a right to adequate notice of default, adequate opportunity to cure such default without the obligation to pay late charges or penalties, the right and sufficient time to terminate the lease without acceleration of the leasehold mortgage, and the opportunity to assume such leasehold mortgage, without the obligation to pay assumption fees, the leasehold mortgagee’s attorneys’ fees, trustee’s fees, penalties or late charges, in the event of a default under the leasehold mortgage and the exercise by the lender of its right to foreclose on the leasehold mortgage. Any such lien, mortgage, deed of trust or security instrument shall be referred to hereafter as a “mortgage”, and the holder or beneficiary of such mortgage shall be referred to hereafter as the “mortgagee.” No mortgagee shall be deemed an assignee of this lease so as to require such mortgagee to assume the performance of any of the terms, covenants or conditions of this lease except upon such mortgage-obtaining title to or Tenant’s right of possession of the leased land as hereinafter provided. In no event shall the leasehold estate created hereunder secure any loan or obligation where the loan proceeds are utilized for any purpose other than the improvement, financing or refinancing of the Premises.
Tenant’s Right to Encumber. Tenant may, at any time, encumber all or any portion of its interest in this Lease and the leasehold estate by deed of trust, mortgage, or other security instrument upon obtaining the prior written consent of Landlord, which consent shall not be unreasonably withheld, and shall be further conditioned upon the agreement of the leasehold mortgagee to simultaneously deliver default notices to Landlord and Tenant. Each such mortgage, deed of trust, or other security instrument acquired by the holder of any leasehold mortgage shall be subject and subordinate to all rights and interests of Landlord herein and shall be a lien only on Tenant's interests in and to this Lease and the leasehold estate created hereby and shall not be a lien on Landlord's fee interest in the Premises or reversionary interest in the improvements. Each leasehold mortgage shall be subject to the terms and provisions of this Lease; and the holder of any leasehold mortgage, or anyone claiming by, through, or under the same, shall not, by virtue thereof, acquire any greater rights hereunder than Tenant has under this Lease. Tenant shall deliver to Landlord copies of all documents recorded to evidence any and all leasehold mortgages and all notices of default received by Tenant from the holder of any leasehold mortgage.
Tenant’s Right to Encumber. Tenant may at any time during the Lease Term encumber the leasehold estate by mortgage or deed of trust. This right of Tenant to encumber the leasehold estate is a continuing right and will not be deemed to be exhausted by the exercise of this right on one or more occasions. Any such encumbrance must be expressly subject to the provisions of this Lease, must not encumber Landlord’s fee simple interest in the Premises, and must be subordinate to any loans to which Landlord has subordinated its fee simple interest.
Tenant’s Right to Encumber. Tenant may at any time during the Pre-Opening Period or the Lease Term encumber the leasehold estate by mortgage or deed or trust. Such right of Tenant to encumber the leasehold estate shall be a continuing right and shall not be deemed to be exhausted by the exercise thereof on one or more occasions. Any such encumbrance shall be expressly subject to the provisions of this Lease, shall not encumber Landlord’s fee simple interest in the Premises, and shall be subordinate to any loans to which Landlord has subordinated its fee simple interest.