assignment of rents
Also found in: Acronyms.
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.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.