Permitted Mortgagee Clause Samples
The Permitted Mortgagee clause defines which lenders or financial institutions are authorized to hold a mortgage or security interest over a property or asset under the agreement. Typically, this clause specifies criteria such as regulatory status, financial standing, or prior approval requirements that a mortgagee must meet to be considered 'permitted.' For example, it may restrict mortgages to reputable banks or recognized lending institutions. The core function of this clause is to ensure that only trustworthy and qualified entities can obtain security interests, thereby protecting the interests of the parties involved and maintaining the integrity of the secured asset.
Permitted Mortgagee. Except as otherwise approved in writing by Landlord, a Permitted Mortgage may be given only to a responsible bona fide institutional lender. For the purposes hereof, the term “institutional lender” shall mean any one of the following lending institutions: a commercial or savings bank; a state bank or national bank, a trust company; an insurance company; a savings and loan association; a building and loan association; a credit union; an investment banking firm; an educational institution; a pension, retirement or welfare fund; a charity; a real estate investment trust (“REIT”) but only if the REIT is publicly traded and registered with the U.S. Securities & Exchange Commission, and the amount of the Permitted Mortgage does not exceed two percent of the value of the REIT’s assets; an endowment fund or foundation authorized to make loans in the State of California; or any other responsible financial institution.
Permitted Mortgagee. The holder of a Permitted Mortgage.
Permitted Mortgagee. The Permitted Mortgagee has these rights:
Permitted Mortgagee. The Ground Lessee has the right to grant a security interest to Ground Lessee’s lenders (including its successors and assigns, the “Permitted Mortgagee”) a leasehold deed of trust, security agreement and/or collateral assignment of Ground Lessee’s rights in this Lease (the “Deed of Trust” or “Permitted Mortgage”) for the purpose of securing repayment of the advance of funds to and loans provided to Ground Lessee by its lenders with respect to Ground Lessee’s use of the Premises and/or Ground Lessee’s construction of the Improvements on the Premises.