Strengthening Letter of Credit Security Provisions
In all too many cases, once reliable tenants are leaving landlords with only a security deposit to fall back on. In addition, if the security deposit is in the form of a letter of credit (LOC), now more than ever the landlords must also keep one eye on the financial stability of the LOC issuer.
Costly Tenant Leasing Mistakes Can Be Avoided
It is extremely constructive to review some of the big mistakes that can be avoided by proper planning and guidance. This two-part article will provide a list that is by no means exhaustive, but an awareness of these problems, will help start the search on the right track.
In the Spotlight: Leasing Outside the Box
Although harnessing the sun's energy through photovoltaic solar panels is not a new idea, due to recent advancements in technology and tax incentives (including the 30% tax credit contained in last year's stimulus plan), the cost-efficiency of these systems has improved significantly.
Vacation and Abandonment of Industrial Premises
Tenants vacating or abandoning their leased space can create a number of problems for industrial landlords. To prevent these problems, it is imperative that all landlords include in their leases provisions prohibiting tenants from vacating or abandoning their leased space. Each such instance should be deemed to be an event of default.
In the Marketplace
Highlights of the latest equipment leasing news from around the country.
Double Duty: UCC Definition of Goods Same for ' 503(b)(9)
As most practitioners know, the Bankruptcy Code imposes a specific priority scheme that controls the payment of claims. The higher the priority of a particular claim, the more likely it is to be paid. Generally, secured claims are paid first from the specific collateral backing that claim, followed by administrative priority claims, unsecured priority claims and then general unsecured claims. Equity takes last, assuming there is anything left.
The Law of Unintended e-Consequences
Everyone who has ever worked on a tech project, whether in e-commerce or general business, has probably seen situations in which an assumed solution creates a bigger mess than the original problem. It's called <i>the law of unintended consequences.</i> A recent federal appellate ruling shows how this rule can work in the law.
Sometimes Hell Does Freeze Over
The recent decision in <i>Reliastar Life Insurance Co. of New York v. Home Depot U.S.A., Inc.</i> illustrates once again the limits of a purchaser's or lender's ability to rely on an estoppel certificate, especially when a tenant is entitled to claim constructive eviction. Moreover, the court determined that constructive eviction would trump a "hell or high water" commitment to pay rent.
Representing Tax-Exempt Organizations in Lease Negotiations
While a typical for-profit client may have experience with lease negotiations or the benefit of an experienced broker, often the tax-exempt organization will not have this advantage and may, therefore, rely more heavily upon its attorney.
