Company: IIPR
Filing Date: 2025-02-21
Form Type: S-3ASR
Source: 0001104659-25-016184
Chunk: 36

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-21
Form: S-3ASR
Chunk 36
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 same degree of care
and skill a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs. The trustee
will become obligated to exercise any of its powers under the indenture at the request of any of the holders of the required percentage
under the indenture only after those holders have offered, and, if requested, provided the trustee indemnity satisfactory to it.

The indenture and provisions of the Trust Indenture
Act that are incorporated by reference therein contain limitations on the rights of the trustee, should it become one of our creditors,
to obtain payment of claims in certain cases or to realize on certain property received by it in respect of any such claim as security
or otherwise. The trustee is permitted to engage in other transactions with us or any of our affiliates; provided, however, that if it
acquires any conflicting interest (as defined in the indenture or in the Trust Indenture Act), it must eliminate such conflict or resign.

Defeasance of Debt Securities and Certain Covenants in Certain Circumstances

Legal Defeasance

The indenture provides that, unless otherwise
provided by the terms of the applicable series of debt securities, we may be discharged from any and all obligations in respect of the
debt securities of any series (subject to certain exceptions). We will be so discharged upon the deposit with the trustee, in trust,
of money and/or U.S. government obligations or, in the case of debt securities denominated in a single currency other than U.S. dollars,
money and/or Foreign Government Obligations (as defined below) of the government that issued or caused to be issued such currency, that,
through the payment of interest and principal in accordance with their terms, will provide money in an amount sufficient in the opinion
of a nationally recognized firm of independent public accountants or investment bank to pay and discharge each installment of principal
of, any premium and interest on, and any mandatory sinking fund payments in respect of the debt securities of that series on the stated
maturity of those payments in accordance with the terms of the indenture and those debt securities.

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This discharge may occur only if, among other
things, we have delivered to the trustee an opinion of counsel stating that we have received from, or there has been published by, the
Service, a ruling or, since the date of execution of the indenture, there has been a change in the applicable U.S. federal income