Common use of Lease Subordination Clause in Contracts

Lease Subordination. Borrowers have agreed under the Portfolio Mortgages and other Loan Documents that Rents payable under any Lease affecting any of the Portfolio Properties shall (after the notice to the tenant described in the following sentence) be paid directly by the tenant to Lender upon any Event of Default under the Loan Documents. Borrowers agree that after a tenant’s receipt of notice from Lender to such tenant that rentals under its Lease should be paid to Lender, such tenant may pay to Lender, or at the direction of Lender, all monies due or to become due to the landlord under such Lease, and that such tenant shall have no responsibility to ascertain whether such demand by Lender is permitted under the Loan Documents, or to inquire into the existence of an Event of Default. Each Borrower hereby waives any right, claim, or demand it may now or hereafter have against any such tenant by reason of such payment to Lender, and any such payment shall discharge the obligations of such tenant to make such payment to the landlord under the applicable Lease.