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Structuring Landlord Lien Waivers and Collateral Access Agreements

Navigating Competing Interests of Tenant's Lender and Landlord

Recording of a 90-minute premium CLE video webinar with Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Conducted on Monday, October 4, 2021

Recorded event now available

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This CLE course will discuss the perspectives of both the tenant's lender and the landlord concerning the tenant's collateralized property on the landlord's premises. The program will look at the parties' competing interests and provide practical suggestions for structuring and negotiating landlord lien waivers and collateral access agreements.

Description

When a lender finances a tenant's business using the tenant's property as collateral, the lender, or equipment lessor, must ensure it has first rights to the tenant's collateral if the tenant defaults on the loan. Thus, the lender will require the landlord to execute a lien waiver and/or a collateral access agreement.

Why are landlord lien waivers needed? In many states, landlords are granted liens against some of the tenant's property. Even in non-lien states, landlords also have remedies for arrears of rent that may subject the tenant's property to a judgment lien.

Thus, for the same reason that a landlord's lender requires the tenant to subordinate its lease to the lender's mortgage by executing an SNDA, the tenant's lender will require the landlord's subordination to its interests.

Collateral access agreements assure that the tenant's lender has rights to access the collateral located on the landlord's property and will preserve the collateral if the tenant defaults on the loan and the lender forecloses.

Listen as our authoritative panel of real estate practitioners discusses the competing interests of the tenant's lender and the landlord concerning the tenant's collateralized property on the landlord's premises. The panel will provide practical suggestions for structuring and negotiating landlord lien waivers and collateral access agreements from both the lender's and the landlord's perspectives.

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Outline

  1. Overview of state laws granting landlords liens on tenant property
  2. Other landlord rights to tenant's property in the event of lease default or abandoned property
  3. Lender interests and negotiating points for lien waivers and collateral access agreements
  4. Landlord interests and negotiating points for lien waivers and collateral access agreements

Benefits

The panel will review these and other key issues:

  • What are the lender's concerns and negotiating points for the landlord lien waiver?
  • What protections and limitations should the landlord seek in exchange for granting the lien waiver?
  • What are the negotiating points in the collateral access agreement for both the landlord and secured lender concerning handling the defaulted tenant's property?

Faculty

Davison, Andrea Campbell
Andrea Campbell Davison
Shareholder
Bean Kinney & Korman

Ms. Davison practices in the areas of bankruptcy, creditors' rights and financial restructuring. She regularly...  |  Read More

Kelly, John G.
John G. Kelly
Shareholder
Bean Kinney & Korman

Mr. Kelly focuses his practice on general corporate law and real property law, including commercial real estate...  |  Read More

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Strafford will process CLE credit for one person on each recording. All formats include course handouts.

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