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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

  • work Practice Area

    Real Property - Transactions

Date & Time
  • event Date

    Monday, October 4, 2021

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$347.00
CLE
ALL

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.

Faculty

John G. Kelly
Shareholder
Bean Kinney & Korman, PC

Mr. Kelly focuses his practice on general corporate law and real property law, including commercial real estate leasing, financing and acquisitions, and business mergers and acquisitions. With respect to leasing, he represents both landlords and tenants nationwide in substantial office, retail, industrial and government leasing transactions. Mr. Kelly serves on the Board of Editors of Commercial Leasing Law & Strategy, a national publication. He has also served as a featured guest on real estate leasing topics on Commercial Real Estate Radio. Mr. Kelly’s lending experience includes representing both lenders and borrowers in complex financial transactions secured by real or personal property, including the negotiation of the initial loan documents and advising with respect to workout strategies and foreclosures.

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Andrea Campbell Davison
Shareholder
Bean Kinney & Korman, PC

Ms. Davison practices in the areas of bankruptcy, creditors' rights and financial restructuring. She regularly represents secured and unsecured creditors, national and regional banks, asset purchasers, commercial landlords and tenants, and various other parties in a wide range of bankruptcy matters. Ms. Davison also counsels lending institutions and other clients in commercial loan transactions, and has performed title and survey review and other diligence in the sale, acquisition or leasing of commercial real estate.

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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.

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?