Facility Mortgage Clause Samples
A Facility Mortgage clause establishes that the lender holds a security interest in specific property or assets as collateral for a loan or credit facility. In practice, this means that if the borrower defaults on their obligations, the lender has the right to enforce the mortgage and potentially seize or sell the secured property to recover outstanding amounts. This clause is commonly used in financing agreements involving real estate or significant assets. Its core function is to protect the lender by providing a legal mechanism to recover losses in the event of borrower default, thereby reducing the lender's risk.
Facility Mortgage. Without the consent of Tenant, Landlord may, subject to the terms and conditions set forth below in this Section, from time to time, directly or indirectly, create or otherwise cause to exist any lien, encumbrance, security interest or title retention agreement ("Encumbrance") upon the Property, or any portion thereof or interest therein, whether to secure any borrowing or other means of financing or refinancing provided that the principal amount of such borrowing, financing or refinancing does not exceed 80% of the then Fair Market Value of the Property. Any such Encumbrance (i) shall contain the right to prepay (whether or not subject to a prepayment penalty, which penalty shall be paid by Landlord), (ii) shall provide that it is subject to the rights of Tenant under this Lease, including the rights of Tenant to acquire the Property pursuant to the applicable provisions of this Lease, provided, however, that Tenant agrees that it will not unreasonably withhold its consent to any request by Landlord that Tenant subordinate this Lease to any mortgage or deed of trust that may hereafter from time to time be recorded on the Property, and to any and all advances made or to be made thereunder, and to renewals, replacements and extensions thereof and (iii) shall be paid in full and released and reconveyed in the event Tenant purchases the Property pursuant to this Lease, unless Tenant elects to assume such Encumbrance. Any such subordination, however, shall be subject to the condition precedent that the mortgagee under such mortgage or the beneficiary under such deed of trust enter into a written nondisturbance and attornment agreement with Tenant, in form and content satisfactory to Tenant, whereunder it is agreed that in the event of a sale or foreclosure under such mortgage or deed of trust, the purchaser of the Property (including the mortgagee or beneficiary under such mortgage or deed of trust), shall acquire or hold the Property subject to this Lease so long as Tenant is not in default hereunder, and so long as Tenant recognizes such purchaser as the landlord under this Lease and agrees, if requested to do so, to attorn to such purchaser and, if instructed to do so by such purchaser, to make rental payments directly to it.
Facility Mortgage. Section 33.2 of the Existing Master Lease is herby amended and restated as follows:
Facility Mortgage. As defined in Article XIII.
Facility Mortgage. The term “Facility Mortgage” means any mortgage, deed of trust or indemnity deed of trust recorded against the Facility as security for a secured loan.
Facility Mortgage. Manager shall use commercially reasonable efforts to cooperate with Owner, as may be reasonably requested by Owner, in its efforts to obtain financing or replacement financing (a “Financing”) for the Facility on favorable terms (e.g., providing prospective lender with information about Manager generally available to the public from a publicly traded company). Owner shall have the right to encumber all of the assets that comprise the Facility, any part thereof, or any interest therein, including the common elements on which the Facility is located, the Facility building and all improvements thereto and all FF&E and equipment and operating supplies placed in or used in connection with the operation of the Facility as contemplated in any Facility Mortgage that is entered into by Owner, provided that any Mortgagee under such Facility Mortgage grants reasonable non-disturbance to Manager, further provided that the Facility Mortgage shall not allow such Mortgagee to use any Working Capital or FF&E Reserve amounts to pay debt service on the Facility Mortgage as such Working Capital and FF&E Reserve amounts shall be used exclusively for the operation of the Facility.
Facility Mortgage. Anything in this Lease contained to the contrary notwithstanding, with respect to any mortgage or mortgages encumbering all or any part of the Premises (each a "Facility Mortgage"), and provided that Landlord has notified Tenant in writing with respect to the existence and substance thereof, Tenant shall at all times and in all respects fully, timely and faithfully comply with and observe each and all of the conditions, covenants, and provisions required on the part of the Landlord and of which Tenant has received notice under any Facility Mortgage (and to any renewals, modifications, extensions, replacements and/or consolidations thereof of which Tenant has received notice) to which this Lease is subordinate or to which it later may become subordinate, including, without limitation, such conditions, covenants and provisions thereof as relate to the care, maintenance, repair, insurance, restoration, preservation and condemnation of the Premises, provided such conditions, covenants and provisions do not require compliance and observance to a standard or degree in excess of that required by the provisions of this Lease or require performance not required by the provisions of this Lease.