Common use of Tenant’s Right to Encumber Clause in Contracts

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.