Proprietary Leases Clause Samples
A Proprietary Leases clause defines the rights and obligations of a tenant who holds a lease for a unit in a cooperative building, rather than owning the unit outright. This clause typically outlines the terms under which the tenant may occupy the unit, the duration of the lease, and the responsibilities for maintenance, payment of fees, and compliance with cooperative rules. For example, it may specify that the leaseholder must obtain board approval for certain actions or that the lease is automatically renewed as long as the tenant remains a shareholder. The core function of this clause is to establish the legal framework for occupancy in a co-op, ensuring both the cooperative corporation and the tenant understand their respective rights and duties, thereby preventing disputes and maintaining order within the building.
Proprietary Leases. With respect to each Cooperative Loan, (i) the terms of the related Proprietary Lease is longer than the terms of the Cooperative Loan, (ii) there is no provision in any Proprietary Lease which requires the Mortgagor to offer for sale the Cooperative Shares owned by such Mortgagor first to the Cooperative Corporation, (iii) there is no prohibition in any Proprietary Lease against pledging the Cooperative Shares or assigning the Proprietary Lease and (iv) the Recognition Agreement is on a form of agreement published by the Aztech Document Systems, Inc. or includes provisions which are no less favorable to the lender than those contained in such agreement;
Proprietary Leases. Section l.