Common use of ENCUMBERANCE AND SEVERING THE BUILDINGS Clause in Contracts

ENCUMBERANCE AND SEVERING THE BUILDINGS. The Lessee shall have the right to encumber the buildings with a mortgage, or pledge, sell or transfer (hereinafter referred to as "transfer") title to any buildings and improvements made to or on the Leasehold, provided the Lessee is current in payments to the Lessor. If in arrears to the Lessor, the Lessee shall secure written consent from the Lessor prior to any such transfer. Such a transfer shall be conditional by its express written terms upon physical severance of the buildings from the Leasehold within two months of the date of the transfer agreement. If physical severance does not occur within two months of such transfer agreement, the transfer shall become null and void as of that date. The Lessee is entitled to mortgage the Lessee interest in the building and improvements, and to grant to such mortgagee all of the Lessee's rights in and to the Leasehold estate. The Lessee has the right to sell, transfer or otherwise dispose of the Lessee's interests to such mortgagee in lieu of foreclosure. However, such transfer shall be subject to Lessor's right of first refusal as provided in the next paragraph. All mortgages must include a copy of this Lease Agreement and the amount of any mortgage or the sum total of multiple mortgages shall not exceed the First Option Purchase Price as determined in this Section 5.