Form R3005 - Consent To Mortgage Of Lease - National Parks Documentation, Canada Page 2
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2Form R3005 (2000/12)
NATIONAL PARKS DOCUMENTATION
(Page 2 of 2)
LETTER OF UNDERTAKING
[Appropriate Parks Canada Address]
[date]
[Mortgagee]
[branch address]
Request for Letter of Undertaking
[Legal Description]
_________________ National Park
I refer to a letter dated____________________, _____ from the law firm of ______________________________,
forwarded to this department at ________________________ in connection with the leasehold mortgage
dated_________________________,_________, granted by ___________________________________________
as mortgagor to _____________________________________________________________, as mortgagee.
The
property
concerned
is
held
by
__________________________________,
under
a
lease
dated
__________________________,______ (as amended________________________ )of the parcel of land for term
of
____________________________years
and
________________
months
commencing
on
________________________, __________.
On behalf of Her Majesty the Queen, in right of Canada, as represented by the Minister of Canadian Heritage, I
hereby undertake and agree as follows:
(A)
If there shall be any breach or default of the covenants or agreements contained in the lease or any other
events which by the lease entitles Her Majesty to terminate the lease, Her Majesty will not terminate the
lease unless:
(i)
the Mortgagee has been given thirty (30)days notice in writing to remedy such default, breach or
other event, such time period to commence from the date of such notice herein after referred to as
"the notice"; and
(ii)
the Mortgagee has failed to remedy such default, breach or other event as provided in paragraph
(B) hereunder.
(B)
The Mortgagee shall be deemed to have failed to remedy such breach, default or other event:
(i)
if it fails to commence foreclosure proceedings within thirty (30) days from the date of the notice,
and the default, breach or other event has not already been corrected; or
(ii)
if it fails to commence other legal proceedings to remedy the default, breach or other event which,
in the opinion of the Minister, are reasonable and sufficient, within thirty(30) days from the date of
the notice, and the default, breach or other event has not already been corrected; and
(iii)
if it begins any of the legal proceedings mentioned herein within thirty (30) days, but fails to
proceed diligently, in the opinion of the Minister, with such legal proceedings, or having proceeded
diligently with them, fails within such time that, in the opinion of the Minister, is reasonable to
remedy the default, breach or other event.
(C)
Provided that the Mortgagee notify Her Majesty simultaneously with the commencement of legal
proceedings against the Mortgagor, as provided for in Clause (B) above, Her Majesty will not unreasonably
withhold Her consent to an assignment of the lease to a third party following the obtaining of a foreclosure
order or an order for judicial sale by the Mortgagee, if such third party undertakes to comply, under all
circumstances, with all the covenants and agreements reserved and contained in the said lease.
(D)
If the Mortgagee elects to enter into possession of the leased property, either directly or through an agent, or
if as a consequence of foreclosure or other proceedings, the Mortgagee obtains a vesting order, or if the
lease is disclaimed or surrendered under or pursuant to any law or statute enabling such disclaimer to be
made, then provided that the Mortgagee gives reasonable notice to Her Majesty in advance of the same,
Her Majesty, on application by the Mortgagee, will consent to the assignment of the lease to the Mortgagee
in such circumstance, or will continue the lease with the Mortgagee as if the Mortgagee were the tenant
thereunder, provided, however, no further assignment of the lease to a third party may be affected by the
Mortgagee without the consent in writing of Her Majesty, which shall not be unreasonably withheld.
(E)
Notwithstanding anything herein, the Lessee, its successors and assigns, are not relieved from the
obligation and duty of complying, under all circumstances, with all the covenants and agreements reserved
and contained in the said lease and nothing shall be construed as a waiver of the rights and remedies
available to Her Majesty against the Lessee as a result of a breach or default under the lease.
(F)
It is further understood and agreed that any consent granted by Her Majesty to an assignment of the lease
to a Mortgagee pursuant to Clause (D) shall not relieve the Mortgagee, its successors and assigns, upon
entering into possession of the leasehold estate, from the condition that it will comply, under all
circumstances, in accordance with, and subject to, the provisions hereof, with all the covenants and
agreements reserved and contained in the lease.
Yours sincerely,
__________________________,
(Title)
Parks Canada, ________________________________ National Park
(Name of Park)
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