Common use of Tenant’s Right to Encumber Leasehold Estate Clause in Contracts

Tenant’s Right to Encumber Leasehold Estate. No Right to Encumber County’s Fee Interest. Provided that an Event of Default has not occurred and is continuing, Tenant may, at any time during the Term of this Lease (after providing prior written notice to County, no later than 30 days prior to the encumbrance, along with evidence that all requirements of this Lease have been complied with), encumber all or any portion of Tenant’s Leasehold Estate with one (1) or more Leasehold Mortgages (and to amend, modify, and supplement any such encumbrance, including encumbrances refinancing the same); provided, however: 17.2.1. Such Leasehold Mortgage(s) (as of the date recorded) shall not exceed (a) if recorded before completion of the Work, One Hundred Percent (100%) of the costs of the acquisition of the Tenant’s interest in the Property (including closing and financing costs) and the Work, or (b) if recorded after completion of the Work, eighty percent (80%) of the Leasehold Estate value (including the value of all improvements) after completion; 17.2.2. That Tenant shall not have the power to encumber, and no Leasehold Mortgage shall encumber, County’s Fee Interest; 17.2.3. Except as expressly provided in this Lease, the Leasehold Mortgage and all rights acquired under it shall be subject to each and all of the covenants, conditions, and restrictions set forth in this Lease and to all rights and interests of County hereunder; and 17.2.4. Nothing in this Lease shall be construed so as to require or result in a subordination in whole or in part in any way of the County’s Fee Interest to any Leasehold Mortgage, and; 17.2.5. Except as otherwise expressly provided herein, in the event of any conflict between the provisions of this Lease and the provisions of any such Leasehold Mortgage, the provisions of this Lease shall control. Tenant’s encumbrance of its Leasehold Estate with a Leasehold Mortgage, as provided in this Section 17.2, shall not constitute an assignment or other Transfer under Article X or otherwise, nor shall any Leasehold Mortgagee, as such, be deemed to be an assignee or transferee of this Lease or of the Leasehold Estate so as to require such Leasehold Mortgagee, as such, to assume the Tenant’s obligations and liabilities under this Lease. Notwithstanding the foregoing, if any Leasehold Mortgagee (or its nominee) acquires title to the Premises by foreclosure or deed in lieu thereof (or by a new lease under Section 17.7), any required consent of the County under this Section 17.2 shall not be unreasonably withheld.

Tenant’s Right to Encumber Leasehold Estate. No Right to Encumber CountyDistrict’s Fee Interest. Provided that an Event of Default has not occurred and is continuing, Tenant may, at any time during the Term of this Lease (with consent of District after providing prior written notice to County, no later than 30 days prior to the encumbrance, along with providing evidence that all requirements of this Lease have been complied with), encumber all or any portion of Tenant’s Leasehold Estate with one (1) or more Leasehold Mortgages (and to amend, modify, and supplement any such encumbrance, including encumbrances refinancing the same)Mortgages; provided, however: 17.2.1. Such Leasehold Mortgage(s) (as of the date recorded) shall not exceed (a) if recorded before completion of the Work, One Hundred Percent (100%) of the costs of the acquisition of the Tenant’s interest in the Property (including closing Improvements prior to completion and financing costs) and the Work, or (b) if recorded after completion of the Work, eighty percent Eighty Percent (80%) of the Leasehold Estate value (including the value of all improvements) after completion; 17.2.2. That Tenant shall not have the power to encumber, and no Leasehold Mortgage shall encumber, CountyDistrict’s Fee Interest; 17.2.3. Except as expressly provided in this Lease, the Leasehold Mortgage and all rights acquired under it shall be subject to each and all of the covenants, conditions, and restrictions set forth in this Lease and to all rights and interests of County District hereunder; and 17.2.4. Nothing in this Lease shall be construed so as to require or result in a subordination in whole or in part in any way of the CountyDistrict’s Fee Interest to any Leasehold Mortgage, and; 17.2.5. Except as otherwise expressly provided herein, in In the event of any conflict between the provisions of this Lease and the provisions of any such Leasehold Mortgage, the provisions of this Lease shall control. Tenant’s encumbrance of its Leasehold Estate with a Leasehold Mortgage, as provided in this Section 17.2, shall not constitute an assignment or other Transfer under Article X or otherwise, nor shall any Leasehold Mortgagee, as such, be deemed to be an assignee or transferee of this Lease or of the Leasehold Estate so as to require such Leasehold Mortgagee, as such, to assume the Tenant’s obligations and liabilities under this Lease. Notwithstanding the foregoing, if any Leasehold Mortgagee (or its nominee) acquires title to the Premises by foreclosure or deed in lieu thereof (or by a new lease under Section 17.7), any required consent of the County under this Section 17.2 shall not be unreasonably withheld.

Tenant’s Right to Encumber Leasehold Estate. No Right to Encumber CountyDistrict’s Fee Interest. Provided that an Event of Default has not occurred and is continuing, Tenant may, at any time during the Term of this Lease (with consent of District after providing prior written notice to County, no later than 30 days prior to the encumbrance, along with providing evidence that all requirements of this Lease have been complied with), encumber all or any portion of Tenant’s Leasehold Estate with one (1) or more Leasehold Mortgages (and to amend, modify, and supplement any such encumbrance, including encumbrances refinancing the same)Mortgages; provided, however: 17.2.1. Such Leasehold Mortgage(s) (as of the date recorded) shall not exceed (a) if recorded before completion of the WorkInitial Improvements, One Hundred Percent (100%) of the costs of the acquisition of the Tenant’s interest in the Property (including closing and financing costs) and the WorkInitial Improvements prior to, or (b) if recorded after completion of and Eighty Percentof the WorkInitial Improvements, eighty percent (80%) of the Leasehold Estate value (including the value of all improvements) after completion; 17.2.2. That Tenant shall not have the power to encumber, and no Leasehold Mortgage shall encumber, CountyDistrict’s Fee Interest; 17.2.3. Except as expressly provided in this Lease, the Leasehold Mortgage and all rights acquired under it shall be subject to each and all of the covenants, conditions, and restrictions set forth in this Lease and to all rights and interests of County District hereunder; and 17.2.4. Nothing in this Lease shall be construed so as to require or result in a subordination in whole or in part in any way of the CountyDistrict’s Fee Interest to any Leasehold Mortgage, and; 17.2.5. Except InExcept as otherwise expressly provided herein, in the event of any conflict between the provisions of this Lease and the provisions of any such Leasehold Mortgage, the provisions of this Lease shall control. Tenant’s encumbrance of its Leasehold Estate with a Leasehold Mortgage, as provided in this Section 17.2, shall not constitute an assignment or other Transfer under Article X or otherwise, nor shall any Leasehold Mortgagee, as such, be deemed to be an assignee or transferee of this Lease or of the Leasehold Estate so as to require such Leasehold Mortgagee, as such, to assume the Tenant’s obligations and liabilities under this Lease. Notwithstanding the foregoing, if any Leasehold Mortgagee (or its nominee) acquires title to the Premises by foreclosure or deed in lieu thereof (or by a new lease under Section 17.7)thereof, any required consent of the County District under this Section 17.2 shall not be unreasonably withheld.