Res 2011-054 - Laserfiche WebLink

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City of San Marcos ARTICLE 12. LESSOR'S LIEN Airport 12.01. The LESSEE grants to the LESSOR a valid first security interest upon all of the LESSEE's goods, chattels, furniture, trade fixtures, inventory and other property upon the LEASED PREMISES to secure all rents and other sums due or to become due to the LESSOR. The LESSEE expressly waives all exemption laws in favor of this security interest; and it is agreed that this express security interest shall be in addition to, and not as a waiver of or substitute for any statutory or other liens of the LESSOR. In connection with this security interest, it is agreed that in the event of a breach or default by the LESSEE, the LESSOR may exercise all rights and remedies provided to a secured party after default under the Uniform Commercial Code ( "UCC "), as adopted and emended in Texas, with respect to all such property, including, without limitation, the right to take and retain possession of the property and to sell it at public or private sale, or to use it in any other manner authorized or provided in the UCC. Upon request by the LESSOR, the LESSEE agrees to execute and deliver UCC Financing Statements to the LESSOR from time to time as the LESSOR deems necessary to perfect the LESSOR's security interest in the property, and proceeds thereof under the provisions of the UCC. ARTICLE 13. LESSEE'S MORTGAGE OF LEASEHOLD INTEREST 13.01. The LESSOR grants permission to the LESSEE for the mortgaging of the LESSEE's leasehold interest in the LEASED PREMISES for the sole purpose of obtaining funding for permanent improvements to the LEASED PREMISES. The LESSEE will provide written notification to the LESSOR of each such mortgage within Ten (10) days after it is executed. The LESSOR agrees that any lien in its favor arising under this LEASE as to the LEASED PREMISES will be subordinate to the lien of the mortgagee under each such mortgage. This clause is self operative and no further instrument of subordination need be required by any mortgagee of the LESSEE. The mortgaging by the LESSEE of its leasehold interest for any other purpose, however, shall require the advance written approval of the LESSOR. In no event, however, shall any lien be asserted against the underlying fees simple interest of LESSOR in the LEASED PREMISES. ARTICLE 14. OPERATION OF THE AIRPORT; LESSOR'S ACCESS TO LEASED PREMISES 14.01 This LEASE, and any interest granted to any lender or other third party by LESSEE, shall be subordinate to the provisions of any existing or future agreement between LESSOR and the United States Government or the State of Texas, which relates to the operation or maintenance of the Airport and is required as a condition for the expenditure of federal funds for the development, maintenance or repair of Airport infrastructure. In the event that any such existing or future agreement directly causes a material restriction, impairment or Commercial Land Lease Page 12 of 18