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Editor’s Note: The growing interest in alternative fuel sources may be a boon for property owners seeking new ways to generate profits and savings. A landowner might install solar panels on a warehouse roof and operate them to produce free energy, selling any excess electricity to the local electric company. But other money-making arrangements can also be made. For example, a landowner might lease roof space (or a parking lot or adjacent unused empty lot) to a solar power producer who would install its own solar panels, manage their production of energy, and reap any profits therefrom. A third arrangement is a sort of hybrid of the two, called a Power Purchase Agreement (PPA). Under a PPA, the landlord leases roof space to another party, which installs and runs the operation but then sells some of the electricity that is generated back to the landlord, at an agreed-upon rate that is lower than what the local utility company would charge. All of these options may look like win-win situations, but, as the author of the following article explains, care should be taken when a roof is the proposed site of a solar-panel installation, whether managed by a property owner or by a lessee.
By Jun Kwon
The Financial Accounting Standards Board released a new set of lease accounting standards, ASC 842, which went into effect earlier this year. Most significantly, publicly traded companies are now obligated to list all leases of 12 months or longer on their balance sheets as both assets and liabilities. Large private companies will follow suit in 2020.
By Howard A. Levine
Further comment and analysis is warranted on the three-judge dissent, which, if adopted by the majority, would have fundamentally altered the very foundation of New York contract law.
By Janice Inman
Defense Based on Federal Law Cannot Confer Federal Jurisdiction
By James O’Brien
Part Two of a Two-Part Article
Part One of this article outlined the basic elements of a subordination, non-disturbance and attornment agreement (SNDA), which regulates two competing interests in the same property — tenant’s right to possess its premises pursuant to its lease and mortgage lender’s security interest in that same premises. Part Two explains the differences between the concepts of “non-disturbance” and “recognition,” while contending that lease recognition is more important to the tenant than not having its possession disturbed.