Assignment of Rents Enforcement After a Default: Receivership, Foreclosure, and Bankruptcy Issues
Best Practices in Drafting an Assignment of Rents and Leases
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE webinar will discuss the different approaches that state and bankruptcy courts have taken to the exercise of assignment of rent remedies and how those approaches should inform the drafting of an assignment of rents and leases document in a commercial mortgage transaction.
Outline
- General purpose of assignment of rents: security (or immediate) interest in rents
- How the mortgagee generally exercises remedies
- Taking possession of a property
- Receivership
- Notice to tenants
- Differing state requirements to enforcement: Uniform Assignment of Rents Act
- Collection issues in bankruptcy
- Significance of collateral vs. absolute assignment
- Key takeaways for drafting and assignment of leases and rents
Benefits
The panel will review these and other vital issues:
- What is the significance of an assignment of rents in a commercial mortgage transaction, and why is it often a separate document from the mortgage?
- How is an assignment of rents perfected, and what issues can arise in enforcement?
- What is collateral assignment as opposed to an absolute assignment, and why would a lender prefer the latter?
- How does the borrower's bankruptcy affect the lender's ability to enforce an assignment of rents?
Faculty
Kevin M. Hudspeth
Principal
Maurice Wutscher
Mr. Hudspeth predominantly represents national mortgage loan servicers on a wide variety of issues. He has substantial... | Read More
Mr. Hudspeth predominantly represents national mortgage loan servicers on a wide variety of issues. He has substantial litigation experience in federal and state courts across the country. Mr. Hudspeth regularly handles cases involving the FDCPA, RESPA, TILA, FCRA, FACTA, the TCPA, the U.S. Bankruptcy Code, and similar federal and state laws and regulations, as well as cases litigating real estate and commercial business disputes, the Uniform Commercial Code, loan repurchase demands, and contested foreclosures. Prior to joining the firm, he worked as an Assistant Attorney General with the Office of the Illinois Attorney General, where he litigated actions arising under the Illinois Consumer Fraud and Deceptive Business Practices Act, the Illinois Uniform Deceptive Trade Practices Act, the Illinois Securities Law, and other related statutes. He also previously worked for Fifth Third Bank, N.A., where he coordinated and supervised outside counsel on litigation strategy for contested foreclosures and cases involving default mortgage loan servicing. Mr. Hudspeth has taught as an Adjunct Professor with Loyola University Chicago School of Law and has published articles in academic and trade journals on a diverse range of topics impacting the consumer lending industry, including issues related to the transfer and enforcement of promissory notes, procedural and evidentiary problems presented in contested mortgage foreclosure cases, substantive law impacting bankruptcy administration, and related matters. He regularly contributes to the American Bar Association’s Business Law Today.
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James P. Sullivan
Partner
Chapman and Cutler
Mr. Sullivan practices in the firm’s Banking and Financial Services Department and is member of the firm’s... | Read More
Mr. Sullivan practices in the firm’s Banking and Financial Services Department and is member of the firm’s Special Situations and Restructuring Group and Litigation Group. He is involved in complex commercial banking restructurings and workouts, in- and out-of-court, on behalf of national and regional financial institutions, private equity funds, insurance companies, and other creditors. Mr. Sullivan represents creditors, both secured and unsecured, in bankruptcy proceedings throughout the country. His financial institution representation also focuses the Uniform Commercial Code, federal and state banking statutory and regulatory compliance, fraud claims, employee rights issues, and consumer finance claims.
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