§ 162.412. What must the lease include if it contains an option to renew?
137 words·~1 min read·
/us/cfr/t25/s§ 162.412·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)If the lease provides for an option to renew, the lease must specify:
(1)The time and manner in which the option must be exercised or is automatically effective;
(2)That confirmation of the renewal will be submitted to us, unless the lease provides for automatic renewal;
(3)Whether Indian landowner consent to the renewal is required;
(4)That the lessee must provide notice of the renewal to the Indian landowners and any sureties and mortgagees;
(5)The additional consideration, if any, that will be due upon the exercise of the option to renew or the start of the renewal term; and
(6)Any other conditions for renewal (e.g., that the lessee not be in violation of the lease at the time of renewal).
(b)We will record any renewal of a lease in the LTRO.