Credit Lease Clause Samples

Credit Lease. In the event that the Lessee has recourse to a credit-lease on his business or one of the components thereof, the Lessee shall be obligated to warn the Lessor by registered letter with return receipt, by the month preceding the signing of this credit-lease contract. The Lessee shall also be obligated to report the date of expiration of the credit-lease contract. In the event the business is transferred, the Credit-Lessee shall be likewise obligated to the Credit-Lessor so that the Lessor will never have to worry about the establishment with the Credit-Lessor of the credit-lease contract. At the time of the business transfer, the Credit-Lessor must inform the owner that all the legal formalities and obligations set forth in the Credit-Lease contract have been fulfilled by the Credit-Lessee assignee. In the event that a renewal of this lease is requested by the Credit-Lessor wishing to install a new operator, the latter will be required to carry on an activity identical to that of the former Credit-Lessor. In this case, the Credit-Lessor must send to the Lessor, at the same time as the request for renewal, all information concerning the new operator (K-(a), statutes, banking references) and of his activity, which shall be subject to his express and written approval.

Credit Lease. With respect to each CTL Property only: (1) Such CTL Property is subject to a Credit Lease; such Credit Lease is in full force and effect, and is a legal, valid, binding and enforceable agreement of the related tenant, except as such enforcement may be limited by bankruptcy, insolvency or other laws affecting the rights of creditors generally, and general principles of equity; no uncured default by the Property-Owning Borrower or the tenant has occurred under such Credit Lease and there is no existing condition which, but for the passage of time or the giving of notice, or both, would result in a default under the terms of such Credit Lease. (2) Each Credit Lease is subordinate to the related Mortgage, either pursuant to the terms and conditions of such Credit Lease or pursuant to the terms and conditions of a subordination, non-disturbance and attornment agreement between the Agent and the applicable tenant; any subleases entered into by such tenant will be subject and subordinate to the Credit Lease and will not relieve the tenant of its obligations under the Credit Lease; in the event that the Agent acquires title to a CTL Property by foreclosure or otherwise, the lessor’s interest under the related Credit Lease is freely assignable by the Agent and its successors and assigns to any person without the consent of the tenant, and, in the event the lessor’s interest is so assigned, the tenant will be obligated to recognize the assignee as lessor under such Credit Lease. (3) Each Credit Lease has an original term ending on or after the date the Property-Owning Borrower is required to deposit its final payment on the related Advance with the Lenders unless covered by extended amortization or residual value insurance. (4) The monthly payment for the related Advance is less than or equal to the basic rent due under the related Credit Lease (unless an “Extended Amortization Policy” or a residual value insurance policy or cash reserves or other form of credit enhancement has been obtained which has been in each case disclosed to Agent). (5) There is no assignment of any Credit Lease by any tenant pending. (6) Each tenant has agreed to notify the related mortgagee of any default under the related Credit Lease and to provide such mortgagee with additional time and opportunity to cure. (7) Except as otherwise disclosed to Agent with respect to tenants which are master lessor to subtenants, each CTL Property is not subject to any lease other than the related Credit ...

Credit Lease. Any Lease where the Tenant (or any guarantor under such Lease) has an Investment Grade Rating. Credit Party(ies). Individually and collectively, Borrower and each Guarantor. Default. See §12.1.