Follow Us

Law.com Subscribers SAVE 30%

Call 855-808-4530 or email GroupSales@alm.com to receive your discount on a new subscription.

Commercial Law

Banks and Landlords: Competing Lien Interests

Banks that provide financing for commercial tenants and the real estate landlords for those same tenants both want additional security in the tenant's personal property located at the premises. This article provides a discussion of the varied interests of the landlord and the tenant's lender in the tenant's personal property, along with suggested compromise solutions.

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Banks that provide financing for commercial tenants and the real estate landlords for those same tenants both want additional security in the tenant’s personal property located at the premises. The interests of the landlord and the lender are in conflict. The landlord is looking to secure the tenant’s rental obligations by taking a lien against the tenant’s fixtures, inventory and equipment located in the space. These items may be particularly valuable in the case of certain retail, restaurant or industrial tenants. At the same time, the tenant’s lender, providing tenant improvement and/or working capital financing, desires a security interest in the same property.

Read These Next