Ground Leased Parcels Clause Samples
The "Ground Leased Parcels" clause defines and governs parcels of land that are subject to a ground lease arrangement within a broader property agreement. Typically, this clause specifies which portions of the property are leased to a tenant for long-term use, often for development or operation, while ownership of the land remains with the landlord. It may outline the boundaries, permitted uses, and responsibilities for maintenance or improvements on these parcels. The core function of this clause is to clearly delineate the rights and obligations associated with ground-leased portions of the property, thereby preventing disputes and ensuring both parties understand their interests and limitations regarding the leased land.
Ground Leased Parcels. With respect to each Ground Leased Parcel, each of the following is true with respect to the related Ground Lease (taking into account the terms of any applicable estoppel letter):
(i) true and complete copies of the Ground Leases have been delivered to Lender, and except as set forth in the Exception Report the Ground Leases or memoranda thereof have been duly recorded;
(ii) to Borrower’s knowledge, the Ground Leases are in full force and effect and no material default beyond applicable grace, cure or notice periods has occurred thereunder nor, to Borrower’s knowledge, is there any existing condition which, but for the passage of time or the giving of notice or both, would result in a material default under the terms of any of the Ground Leases;
(iii) except as set forth in the Exception Report, the Ground Leases have original terms which extend not less than 30 years beyond the Maturity Date (assuming the exercise of all extension options hereunder), taking into account any extension options that are freely exercisable by the lessee under the Ground Lease, and all such extension options have either been previously exercised or are first exercisable not less than five years after the Maturity Date;
(iv) except as set forth in the Exception Report, the Ground Leases do not restrict the use of any portion of the Properties by the lessee, its successors or its assigns in a manner that would cause a Material Adverse Effect;
(v) except as set forth in the Exception Report, the Ground Leases permit the interest of the lessee thereunder to be encumbered by leasehold mortgages and contains no restrictions on the identity of a leasehold mortgagee;
(vi) except as set forth in the Exception Report, the Ground Leases may not be amended, modified, cancelled or terminated without the prior written consent of a leasehold mortgagee;
(vii) with respect to the Mortgage Loan Collateral Properties, to Borrower’s knowledge, other than Permitted Encumbrances, the Ground Leases are not subject to any Liens or encumbrances superior to, or of equal priority with, the Mortgage (other than the ground lessor’s fee interest);
(viii) with respect to the Mortgage Loan Collateral Properties, to Borrower’s knowledge, other than Permitted Encumbrances, there are no Liens encumbering the ground lessor’s fee interests, and, except as permitted herein, Borrower shall not permit or cause any Lien to become superior to the Ground Lease upon the related fee interest that may hereafter be grante...
Ground Leased Parcels. The three (3) parcels of the Land located in ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ and Baton Rouge, Louisiana (the “Ground Leased Parcels”) are each subject to ground leases wherein Seller is the lessee (collectively, the “Ground Leases” or “Ground Lease” if referring to one). As to those three (3) parcels, Seller will not convey fee title to Buyer but, instead, will assign to Buyer all of Seller’s right, title and interest as lessee under each respective Ground Lease.