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E. Lessee shall have the right to mortgage its leasehold interest in accordance with <br />the terms and provisions of this Section. These terms and conditions include <br />the following: <br />l . The term "Leasehold Mortgage" as used in this lease refers to a mortgage <br />or deed of trust on Lessee's leasehold estate hereunder including without <br />limitation any and all improvements constructed by Lessee hereunder, <br />permitted by the provisions of this lease or made with City's express <br />written consent. The holder of such Leasehold Mortgage or of any note <br />issued in connection therewith and the trustee thereunder, if any, is <br />referred to in this lease as the "Leasehold Mortgagee." <br />2. Lessee shall have the right, as provided herein, to mortgage this lease to <br />finance construction of the improvements to be constructed by Lessee <br />under the terms of this lease or to provide permanent or so called "take <br />out" financing after the construction of such improvements or to finance <br />Lessee's capital additions, and equipment and fixtures, and acquisitions <br />or replacements reasonably required in the conduct of its business <br />activity as required under the terms of this lease or to provide <br />refinancing of any financing or to provide financing in connection with <br />an assignment in accordance with the terms and provisions of this lease, <br />providing that: <br />a. The Leasehold Mortgage and all rights acquired under it shall be <br />subject to each and all of the covenants, conditions, and restrictions <br />stated in this lease and to all rights and interests of City except as <br />otherwise provided in this lease; <br />b. The construction loan or loan to finance capital additions or <br />equipment and fixture acquisition or replacement shall not exceed the <br />costs of construction of the improvements so financed or the cost of the <br />capital additions or equipment and fixture acquisition or replacement so <br />financed; <br />c. The amount of any Leasehold Mortgage placed on Lessee's leasehold <br />interest any time after the first twenty (20) years of the term of this <br />lease shall not exceed eighty percent (80%) of an amount calculated as <br />follows: <br />The appraised fair market value, at the time of the mortgage, of <br />the realty including all improvements thereon (without regard to <br />the fact that the realty is subject to a lease) multiplied by a <br />fraction, the numerator of which shall be the unexpired portion of <br />the lease term and the denominator of which shall be the original <br />lease term of thirty (30) years. No financing or refinancing shall <br />encumber any portion of City's fee interest in the realty. <br />26 <br />