assignment of rents

assignment of rents

Additional collateral usually required by lenders for commercial properties. The lender may wish to take some step short of foreclosure if there is a default. By virtue of the assignment of rents,the lender may exercise its rights to contact all tenants and advise them to pay their rent directly to the lender rather than to the landlord borrower.

References in periodicals archive ?
The Tennessee deed of trust, assignment of rents and leases, security agreement and fixture filing is filed by the company with Renasant Bank.
In a ruling on a request for the appointment of a receiver, the court is likely to consider all of the facts and circumstances, which could include: (i) the amount of unpaid taxes or insurance premiums, (ii) the length of time for which any payments of taxes or insurance have been past due, (iii) whether the lender has encountered difficulties enforcing the assignment of rents, and (iv) whether the borrower has been guilty of any misconduct or mismanagement, such as misappropriating rents for purposes other than preservation of property.
The Assignment of Rents Clause has no relevance to residential mortgage loans.
The certificates are collateralized by an assignment of rents on a 900,000 square-foot (sf) building leased to the IRS in Detroit, MI.
For example, you generally create and perfect an interest in real property with a mortgage or deed of trust and an assignment of rents that you record in the appropriate office.
In many jurisdictions, recording a mortgage or an assignment of rents will not perfect a security interest in favor of the lender in room revenues.
The note was secured by a first priority deed of trust that included an assignment of rents.
The secured lease bonds are currently collateralized by an assignment of rents on operating properties guaranteed by absolute net leases to Kmart Corporation (Kmart), in which Kmart is obligated to pay rental payments with no setoff, abatement or reduction.
The certificates are currently collateralized by an assignment of rents on a 900,000 square-foot (sf) IRS building in Detroit, MI.
The transaction is secured by a first mortgage lien on the Freehold Mall, and an assignment of rents and leases.
The certificates are currently collateralized by an assignment of rents on 16 properties guaranteed by absolute net leases to Kmart, in which Kmart is obligated to pay rental payments with no setoff, abatement or reduction.
The certificates are currently collateralized by an assignment of rents on 24 properties guaranteed by absolute net leases to Kmart, in which Kmart is obligated to pay rental payments with no setoff, abatement or reduction.