Common use of Lease Requirements Clause in Contracts

Lease Requirements. All Leases shall be written on such standard form lease (without any material changes unless re-submitted for Lender's approval, which approval shall not be unreasonably withheld or delayed) as is attached as Exhibit C to the Receipt and Closing Certificate of even date herewith, if any, and shall be on arms length terms, shall provide for free rent only if the same is consistent with prevailing market conditions and shall provide for market rents (including Security Deposits, if any) then prevailing in the market area of the Real Estate or as reasonably determined by Borrower suing prudent business practices; provided, however, (x) Borrower shall be permitted to offer leasing incentive consistent with its ordinary business and marketing practices and those of its affiliates, and (y) Borrower shall be permitted to allow month-to-month tenancies without obtaining written Lease renewals following the expiration and pursuant to the terms of written Leases. Notwithstanding the foregoing sentence and the provisions of Section 1.12(b) below, Borrower shall be permitted to offer Leases to Sun Home Services, Inc. ("SHS"), an affiliate of borrower, utilizing form leases similar to that attached as Exhibit C to the Receipt and Closing Certificate of even date herewith, but such leases may provide for (i) term lengths and rental amounts to be determined by Borrower in its sole discretion, in the case of leases of sites on which SHS wishes to place model homes, and (ii) the right of the lessee to sublease, in the case of leases of sites on which SHS wishes to place a manufactured home and lease such home and sublease the underlying site to a resident. Borrower shall also submit to Lender for Lender's approval, prior to the execution thereof, any proposed Lease, license or occupancy agreement of the pad sites, clubhouse or other improvements or any portion thereof that differs materially and adversely from the aforementioned form lease. Except as otherwise provided herein, Borrower shall not execute any Lease, license or occupancy agreement except for an actual occupancy by the tenant, lessee or licensee thereunder. No Lease shall contain any option or right of first refusal to purchase all or any portion of the Property.

Lease Requirements. All Leases shall be written on (A) the Mortgagor is the owner of a valid and subsisting interest as tenant under such standard form lease and is not in default thereunder; (B) the terms of such lease expressly permit the mortgaging of the leasehold estate, the assignment of the lease without any material changes unless re-submitted for Lender's approvalthe lessor’s consent (or the lessor’s consent has been obtained, which approval shall not be unreasonably withheld or delayed) as such consent is attached as Exhibit C to the Receipt and Closing Certificate of even date herewith, if any, and shall be on arms length terms, shall provide for free rent only if the same is consistent with prevailing market conditions and shall provide for market rents (including Security Deposits, if any) then prevailing in the market area Mortgage File and such consent is in full force and effect) and the acquisition by the holder of the Real Estate Mortgage of the rights of the lessee upon foreclosure or as reasonably determined by Borrower suing prudent business practicesassignment in lieu of foreclosure or provide the holder of the Mortgage with substantially similar protection; provided, however, (C) the terms of such lease do not (x) Borrower shall be permitted allow the termination thereof upon the lessee’s default without the holder of the Mortgage being entitled to offer leasing incentive consistent with its ordinary business and marketing practices and those of its affiliatesreceive written notice of, and opportunity to cure, such default or (y) Borrower shall be permitted to allow month-to-month tenancies without obtaining written Lease renewals following prohibit the expiration and pursuant holder of the Mortgage from being insured under the hazard insurance policy relating to the terms Mortgaged Property; (D) the original term of written Leases. Notwithstanding such lease is not less than fifteen (15) years; (E) the foregoing sentence term of such lease does not terminate earlier than ten (10) years after the maturity date of the Mortgage Note; (F) the Mortgaged Property is located in a jurisdiction in which the use of leasehold estates for residential properties is an accepted practice; (G) the mortgagee under the Mortgage Loan is given at least thirty (30) days’ notice of any default and an opportunity to cure any defaults under such lease or to take over the Mortgagor’s rights under such lease; (H) such lease does not contain any default provisions that could give rise to forfeiture or termination of Section 1.12(bsuch lease except for the non-payment of such lease’s rents; (I) belowsuch lease provides that the leasehold can be transferred, Borrower shall be permitted to offer Leases to Sun Home Services, Inc. ("SHS"), mortgaged and sublet an affiliate unlimited number of borrower, utilizing form leases similar to that attached as Exhibit C times either without restriction or on payment of a reasonable fee and delivery of reasonable documentation to the Receipt lessor; (J) the lease is in full force and Closing Certificate effect; (K) the lessor is not in default; (L) the lease protects the interests of even date herewith, but such leases may provide for (i) term lengths and rental amounts to be determined by Borrower in its sole discretion, the mortgagee under the Mortgage Loan in the case event of leases of sites on which SHS wishes to place model homes, a property condemnation; and (iiM) the right of the lessee to sublease, in the case of leases of sites on which SHS wishes to place a manufactured home all rents and lease such home and sublease the underlying site to a resident. Borrower shall also submit to Lender for Lender's approval, prior to the execution thereof, any proposed Lease, license or occupancy agreement of the pad sites, clubhouse or other improvements or any portion thereof that differs materially and adversely from the aforementioned form lease. Except as otherwise provided herein, Borrower shall not execute any Lease, license or occupancy agreement except for an actual occupancy by the tenant, lessee or licensee thereunder. No Lease shall contain any option or right of first refusal to purchase all or any portion of the Propertycharges have been paid when due.