The "Right to Encumber" clause allows a party to use property as collateral to secure a debt or obligation, potentially impacting the property's marketability or the rights of other stakeholders. It grants the holder the ability to place liens or mortgages on the asset, often subject to terms and conditions outlined in the agreement.
While such Shares are held by the Company and until such Shares have vested, the Participant for whose benefit such Shares are held shall not have the right to encumber or otherwise change, sell, assign, transfer, pledge or otherwise dispose of such unvested Shares or any interest therein, and such unvested Shares shall not be subject to attachment or any other legal or equitable process brought by or on behalf of any creditor of such Participant; and any such attempt to attach or receive Shares in violation of this Award Agreement shall be null and void.
No Leasehold Mortgage. Tenant shall not have the right to encumber by mortgage any or all of its interest under this Lease, including, without limiting the generality of the foregoing, its right to use the Premises.
No Independent Trustee, his or her designated beneficiary or estate or any other person shall have the right to encumber, pledge, sell, assign or transfer the right to receive payments under this Plan, except by will or by the laws of descent and distribution. All such payments and the right thereto are expressly declared to be non-assignable.
Right to Encumber a) Project Company Right to Mortgage Leasehold Interest. Project Company may at any time mortgage all or any part of its interest in the Lease and rights under this Lease and/or enter into a collateral assignment of all or any part of its interest in the Lease or rights under this Lease to any entity (“Lender”) without the consent of Owner. Any Lender will have no obligations under this Lease until such time as it exercises its rights to acquire Project Company’s interests subject to the lien of Lender’s mortgage by foreclosure or otherwise assumes the obligations of Project Company directly. Project Company will undertake reasonable efforts to notify Owner of the identity and notice address for any Lender, but failure to do so will not be considered a default hereunder. (b) Amendment Requires Lender Consent. Owner and Project Company agree that, once all or any part of Project Company’s interests in the Lease are mortgaged or assigned to a Lender, they will not modify or terminate this Lease without the prior written consent of the Lender. (c) Lender Right to Cure Project Company Default. Owner agrees that any Lender will have the right to make any payment and to do any other act or thing required to be performed by Project Company under this Lease, and any such payment, act or thing performed by Lender will be effective to prevent a Breach by Project Company and any forfeiture of any of Project Company’s rights under this Lease as if done by Project Company itself. (d) Notice from Owner to Lender in Case of Project Company Default. During the time all or any part of Project Company’s interests in the Lease are mortgaged or assigned to any Lender, if Project Company defaults under any of its obligations and Owner is required to give Project Company notice of the default, Owner will also be required to give Lender notice of the default. If Owner becomes entitled to terminate this Lease due to an uncured default by Project Company, Owner will not terminate this Lease unless it has first given written notice of the uncured default and of its intent to terminate this Lease to the Lender and has given the Lender at least thirty (30) days from such notice to cure the default to prevent termination of this Lease. If within such thirty (30) day period the Lender notifies the Owner that it must foreclose on Project Company’s interest or otherwise take possession of Project Company’s interest under this Lease in order to cure the default, Owner will not terminate this Lease and will permit the Lender a reasonable period of time necessary for the Lender, with the exercise of due diligence, to foreclose or acquire Project Company’s interest under this Lease and to perform or cause to be performed all of the covenants and agreements to be performed and observed by Project Company. The time within which Lender must foreclose or acquire Project Company’s interest will be extended to the extent Lender is prohibited by an order or injunction issued by a court or the operation of any bankruptcy or insolvency law from commencing or prosecuting the necessary foreclosure or acquisition. (e) Recognition of Lender as Successor. The acquisition of all or any part of Project Company’s interests in the Lease by any Lender through foreclosure or other judicial or non-judicial proceedings in the nature of foreclosure, or by any conveyance in lieu of foreclosure, will not require the consent of Owner nor constitute a Breach or default of this Lease by Project Company, and upon the completion of the acquisition or conveyance, Owner will acknowledge and recognize Lender as Project Company’s proper successor under this Lease upon Lender’s cure of any existing Project Company defaults and assumption of the obligations of Project Company under this Lease prospectively.
Notwithstanding anything to the contrary in the Master Lease, Sublessor shall not have the right to encumber its leasehold estate during the Sublease Term.
Section 29.11Landlord’s Title. Landlord’s title is and always shall be paramount to the title of Tenant. This Lease does not give Tenant the right to encumber the title of Landlord or to subject Landlord’s title to the Project to any liens or encumbrances whether claimed by operation of law or express or implied contract.
Borrower has the right to encumber the Property with up to $2.0 million in mezzanine debt with a rate of up to 12.0% upon (i) DSCR (Combined) greater than or equal to 1.25x, (ii) LTV (Combined) no greater than 80.7%, (iii) Each of the Tenants commonly known as “LA Fitness”, “Walmart” at Individual Property (Florida) and “Walmart” at Individual Property (Michigan), satisfy all of the Operating Conditions, (iv) Debt Yield (Combined) greater than or equal to 7.7%
Notwithstanding the above, our sponsor shall have the right to encumber up to one-third (1/3) of its founder shares and the shares of Class A common stock issuable upon conversion thereof without restriction at any time following the execution of the letter agreement.
During the term of this Sublease Agreement, SUBLESSOR shall have the right to encumber its interest in the Subleased Property or in this Sublease Agreement for any purpose it deems convenient and SUBLESSEE shall and hereby does subordinate its interest in this Sublease Agreement and in the Subleased Property to such encumbrances.
No Encumbrance; No Change in Permitted Use. Notwithstanding anything to the contrary contained in this Article, (i) Tenant shall have no right to encumber, pledge, hypothecate or otherwise transfer this Lease, or any of Tenant’s interest or rights hereunder, as security for any obligation or liability of Tenant, and (ii) Tenant shall have no right to propose (and Landlord shall have no obligation to consider or approve) any assignment or subletting which entails any change in the Permitted Use. Without limiting the generality of the foregoing, Tenant expressly agrees that Tenant shall not, and Tenant has no right to, encumber, pledge, or hypothecate any leasehold improvements or Alterations, including fixtures.
No Right to Encumber. Tenant shall not encumber, by mortgage, chattel or real estate security agreement, deed of trust or any other similar security documents or documents of transfer and conveyance, its leasehold interest and estate in the Premises.
Tenant's Right to Encumber. Tenant may, at any time, encumber all or any portion of its interest in this Lease and the leasehold estate by deed of trust, mortgage, or other security instrument upon obtaining the prior written consent of Landlord, which consent shall not be unreasonably withheld, and shall be further conditioned upon the agreement of the leasehold mortgagee to simultaneously deliver default notices to Landlord and Tenant. Each such mortgage, deed of trust, or other security instrument acquired by the holder of any leasehold mortgage shall be subject and subordinate to all rights and interests of Landlord herein and shall be a lien only on Tenant's interests in and to this Lease and the leasehold estate created hereby and shall not be a lien on Landlord's fee interest in the Premises or reversionary interest in the improvements. Each leasehold mortgage shall be subject to the terms and provisions of this Lease; and the holder of any leasehold mortgage, or anyone claiming by, through, or under the same, shall not, by virtue thereof, acquire any greater rights hereunder than Tenant has under this Lease. Tenant shall deliver to Landlord copies of all documents recorded to evidence any and all leasehold mortgages and all notices of default received by Tenant from the holder of any leasehold mortgage.
TENANT'S RIGHT TO ENCUMBER, ASSIGN, OR SUBLEASE 1.Tenant May Not Use Lease as Collateral. Tenant may not voluntarily or involuntarily use this Lease for collateral (known as "encumbering" the Lease) without Landlord's prior written consent, which consent will not be unreasonably withheld. 2.Assignment or Subletting by Tenant. Except as permitted under Section 15.3.D of this Lease, Tenant may not assign or transfer its interest in this Lease without Landlord's prior written consent, which consent shall not be unreasonably withheld. Tenant may sublet any portion of the Leased Premises subject to the Landlord’s right to approve any subtenant, which approval shall not be unreasonably withheld or delayed. Consent to an assignment, transfer or sublease shall not be interpreted as consent to any renewal, additional or subsequent assignment, transfer or sublease.
The “Right to Encumber” is a legal concept that grants an individual or entity the ability to place a burden or charge on an asset or property. This typically involves using the property as collateral to secure a debt or loan. When a property is encumbered, it is subject to certain claims or liabilities, such as mortgages, liens, or easements, which can affect its transferability or value.
The Right to Encumber is typically exercised when an individual or business needs to secure financing by leveraging their assets. It is used in various situations, including:
Writing a clause or agreement that includes the Right to Encumber involves clear language and legal specifics, often drafted by legal professionals. The document should include:
Example:
“The Borrower hereby grants the Lender the right to encumber the property located at [Property Address], to secure repayment of the loan amounting to [Loan Amount]. The encumbrance shall take the form of a mortgage lien, subject to the terms outlined in this agreement.”
The Right to Encumber is commonly found in several types of legal documents and contracts, including:
By including the Right to Encumber in these documents, parties can formally establish the ability to use assets as collateral, paving the way for securing necessary financing or credit.
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Dive deeper into the world of clauses and learn more about these other clauses that are used in real contracts.
The "Right to Indemnification" clause in a contract ensures that one party (typically the indemnitee) is protected from any losses, damages, or liabilities incurred as a result of the actions or omissions of another party (the indemnitor). This clause obligates the indemnitor to compensate the indemnitee for any costs or legal fees arising from claims, effectively shifting the risk from one party to the other.
The "Right to Subcontract" clause allows a party in a contract to delegate their obligations or tasks to a third-party subcontractor, subject to any limitations or conditions outlined in the agreement. This clause typically ensures that the original party remains responsible for the performance of their contractual duties, even if those duties are executed by the subcontractor.
A "Right to Sublet" clause allows a tenant to lease their rented property to a third party, either entirely or partially, with certain conditions or restrictions set by the landlord. This clause typically requires the tenant to obtain the landlord's consent before subletting, ensuring the subtenant meets specific criteria.
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