Tenant Not Obligated to Exercise Lease Option

Facts: A bank tenant entered into two ground leases for properties on which to build a bank branch and parking lot, respectively. The tenant was responsible for procuring all necessary permits. The ground leases provided a contingency period—the “Approval Period”—of six months during which the tenant was required to seek all necessary government approvals and permits to construct and operate the branch. The leases also gave the tenant an option to extend the Approval Period for two three-month terms.

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