Covenants Regarding Leases Clause Samples
The "Covenants Regarding Leases" clause sets out the obligations and restrictions that a party, typically a property owner or tenant, must follow in relation to leasing the property. This clause may require the party to obtain consent before entering into new leases, maintain certain standards for existing leases, or prohibit subleasing without approval. By clearly defining what is permitted and what is restricted regarding leases, this clause helps prevent unauthorized leasing arrangements and ensures that all parties maintain control and oversight over the use and occupancy of the property.
Covenants Regarding Leases. Borrower shall not, without the prior written consent of Lender obtained in each instance:
(1) lease to any Person, all or any part of the space in, on or over any of the Premises;
(2) cancel, terminate or accept a surrender or suffer or permit any cancellation, termination or surrender of any Lease or any guaranty of any Lease;
(3) modify any Lease so as to (i) reduce the term thereof or the Rents payable thereunder, (ii) change any renewal provision contained therein, (iii) otherwise increase any obligation of Borrower thereunder, or (iv) reduce any obligation of Lessee thereunder;
(4) commence any summary proceeding or other action to recover possession of any space demised pursuant to any Lease, other than a proceeding brought in good faith by reason of a default of any Lessee;
(5) receive or collect, or permit the receipt or collection of, any Rents for more than one month in advance of the payment due dates;
(6) take any other action with respect to any Lease which would tend to impair the security of Lender pursuant to this Security Deed;
(7) extend any present Lease other than in accordance with the terms presently provided for therein;
(8) execute any agreement or instrument or create or permit a lien which may be or become superior to any Lease;
(9) suffer or permit to occur any release of liability of any Lessee or the accrual of any right in any Lessee to withhold payment of any Rent;
(10) sell, assign, transfer, mortgage, pledge or otherwise dispose of or encumber, whether by merger, consolidation, operation of law or otherwise, any Lease or any Rents;
(11) alter, modify or change the terms of any guaranty of any Lease or consent to the release of any party thereto;
(12) request, consent, agree to, or accept, the subordination of any Lease to any mortgage (other than this Security Deed) or other encumbrance now or hereafter affecting the Premises; or
(13) consent to the assignment of any Lease or any subletting of the Premises demised pursuant to any Lease, subject to the following provisos:
(i) so long as prompt written notice is delivered to Lender of any such assignment or subletting, the tenant's interest under a Lease may be assigned or sublet if such assignment or subletting is expressly permitted under the terms of the applicable Lease without the requirement of consent by the landlord thereunder; and
(ii) if Lender's consent to such assignment or subletting is required hereunder, then Lender will not unreasonably withhold its consent; ...
Covenants Regarding Leases. Borrower (i) shall observe and perform all the obligations imposed upon the lessor under each Lease in all material respects, and shall not do or permit to be done anything to impair the value of any Lease as security for the Obligations; (ii) upon request (which request is hereby deemed given with respect to any “Major Lease”, as defined below), shall promptly send copies to Lender of all notices of default which Borrower shall send or receive thereunder; (iii) shall enforce all of the material terms, covenants and conditions contained in each Lease upon the part of the Tenant thereunder to be observed or performed, (iv) shall not collect any of the Rents more than one (1) month in advance (it being acknowledged that security deposits shall not be deemed Rents collected in advance); (v) shall not execute any other assignment of the lessor’s interest in any of the Leases or the Rents and Profits (other than to Lender as security for the Obligations); and (vi) shall not consent to any assignment of or subletting under any Lease not in accordance with the terms of such Lease, in each case without the prior written consent of Lender. Within 30 days after Lender’s request therefor (which request shall not be made more than the lesser of twice in any calendar year absent an Event of Default or the maximum number of estoppel certificates the Tenant under the Lease is required to provide), Borrower shall deliver to Lender an estoppel certificate from each Tenant to the extent Borrower can require Tenant to deliver such estoppel certificates.
Covenants Regarding Leases. Borrower agrees:
(a) Not to execute any Leases affecting the Property or any part thereof without the prior written consent of Lender;
(b) Not to collect any of the Rents for more than one (1) month in advance of the time when the same become due under the terms thereof;
(c) Not to discount any future accruing Rents;
(d) Not to execute any other assignments of any Leases or any interest therein or any of the Rents thereunder;
(e) That notwithstanding any variation of the terms of the Mortgage or any extension of time for payment thereunder or any release of part or parts of the Property, the Leases, Rents hereby assigned, insofar as they relate to the unreleased Property, shall continue as additional security in accordance with the terms hereof;
(f) To hold and account for all down payment or ▇▇▇▇▇▇▇ money deposits in the manner provided for under any state or local laws or ordinances applicable to the Property or under the Loan Documents; and
(g) To perform all of the Borrower's covenants and agreements under the Leases and not to suffer or permit to occur any release of liability of the lessees or purchasers.
Covenants Regarding Leases. Grantor shall not, without the prior written consent of Beneficiary obtained in each instance:
Covenants Regarding Leases. 23 F. Approval of Leases..................................................... 24 G.
Covenants Regarding Leases. Mortgagor agrees:
(a) Not to execute any Leases which affect the Property except on the form approved by the Mortgagee, without the prior written consent of Mortgagee.
(b) Not to execute any other assignments of said Leases or any interest therein or any of the Rents and Revenues thereunder;
(c) That notwithstanding any variation of the terms of the Mortgage or any extension of time for payment thereunder or any release of part or parts of the Property, the Leases, Rents and Revenues hereby assigned, insofar as they relate to the unreleased Property, shall continue as additional security in accordance with the terms hereof; and
(d) To hold and account for all security deposits in the manner provided for under any state or local laws or ordinances applicable to the Property or under the Loan Documents; and (e) To perform all of the Mortgagor's covenants and agreements under the Leases and not to suffer or permit to occur any release of liability of the lessees except in the exercise of its business judgment as a prudent landlord.
Covenants Regarding Leases. Mortgagor shall not, without the prior written consent of Mortgagee in each instance:
Covenants Regarding Leases. (a) The Leases are valid and subsisting leases, are in full force and effect in accordance with the terms thereof and have not been modified except as herein set forth. All of the rents and other charges payable under the Leases prior to the execution hereof have been paid, all of the terms, conditions and agreements contained in the Leases have been performed and no default exists under the Leases. This Deed of Trust is lawfully executed and delivered in conformity with the Leases and is, and will be kept, a valid lien on the interests of the Grantor therein.
(b) The Grantor will promptly pay, or cause to be paid, all rents, charges and other sums or amounts required to be paid by the Grantor under the terms of the Leases, will further timely and fully keep and perform all of the covenants, terms, conditions and provisions of the Leases required to be performed and complied with by the tenant thereunder, and will not do or suffer to be done anything the doing of which, or refrain from doing anything the omission of which, will impair the security of this Deed of Trust.
(c) The Grantor also covenants that it will not modify, extend, supplement, or in any way alter the terms of the Leases or cancel or surrender the Leases, or waive, excuse, condone or in any way release or discharge the other parties thereunder of or from any obligations, covenants, conditions and agreements by said parties to be done and performed, without the Beneficiary’s prior written consent. The Grantor does by these presents expressly release, relinquish and surrender unto the Beneficiary all its right, power and authority to cancel, surrender, amend, modify, supplement or alter in any way the terms and provisions of the Leases and any attempt on the part of the Grantor to exercise any such right without the prior written consent of the Beneficiary thereto shall constitute a default under the terms hereof. The Grantor also covenants that it will promptly notify the Beneficiary of any breach by the other parties under the Leases and of any inability of such parties to perform their obligations under the Leases and will enforce the obligations of the Lessor under the Leases, to the end that Grantor may enjoy all of the rights granted to it as lessee under the Leases. The Grantor assigns to the Beneficiary the proceeds of any claim the Grantor may have against such parties for such breach or inability. The Beneficiary shall have the sole right to choose either (i) to proceed against suc...
Covenants Regarding Leases. Assignor covenants it will not, without the prior written consent of Assignee obtained in each instance:
(a) take any action with respect to any Lease which would impair the security of Assignee under this Assignment or the Security Instrument; or
(b) except as permitted under the Credit Agreement, sell, assign, transfer, mortgage, pledge or otherwise dispose of or encumber, whether by operation of Applicable Law or otherwise, any Lease or any rentals under any Lease or any current or future Rents.
Covenants Regarding Leases. Assignor agrees:
(a) To observe and comply with all provisions of law applicable to the operation and ownership of the Property, including, without limitation, all applicable provisions of Minnesota Statutes, Section 504B.178 with respect to any security deposits received by it, and all covenants and obligations required of it by the provisions of Minnesota Statutes, Section 504B.161;
(b) Not to execute any Leases affecting the Property or any part thereof without the prior written consent of Assignee as required by the Loan Agreement and/or the Mortgage;
(c) That said Leases shall remain in full force and effect irrespective of any merger of the interest of the lessor and lessee thereunder; and that it will not transfer or convey the fee title to the Property to any of the lessees except as permitted by the Loan Agreement and Mortgage;
(d) That if the Leases provide for the abatement of rent during repair of the Property by reason of fire or other casualty, the Assignor shall furnish rental insurance to the Assignee, the policies to be in amount and form and written by such insurance companies as shall be satisfactory to the Assignee;
(e) That none of the rights and remedies of the Assignee under the Mortgage shall be delayed or in any way prejudiced by this Assignment;
(f) That notwithstanding any variation of the terms of the Mortgage or any extension of time for payment thereunder or any release of part or parts of the Property, the Leases and benefits hereby assigned, insofar as they relate to the unreleased Property, shall continue as additional security in accordance with the terms hereof;
(g) Not to request, consent to, agree to or accept a subordination of the Leases to any other mortgage or other encumbrance now or hereafter affecting the Property and otherwise as provided in the Mortgage;
(h) To hold and account for all security deposits in the manner provided for under any state or local laws or ordinances applicable to the Property;