HIDDEN CASH FLOW DISTRIBUTION RESTRICTIONS IN LOAN DOCUMENTS (COMPARATIVE ANALYSIS FOR BORROWERS AND LENDERS)

May 8, 2018 | by

When a borrower places a lien on a commercial real estate (“CRE”) asset as part of a lending transaction, part of the collateral granted includes an assignment of the rents generated by the asset (often defined broadly in the loan documents, “Rents”). Unless a CRE loan is made subject to some form of pre-default cash… View Article

JR KASMAN, PLLC TRANSACTION TIP SERIES: CONSIDER ADVANCE PERMISSION FOR UTILITY EASEMENTS

February 12, 2018 | by

CONSIDER ADVANCE PERMISSION FOR UTILITY EASEMENTS: The grant of utility easements, even if within the ordinary course of business or beneficial to a property, may fall within a transfer restriction, or other restriction, in loan/financing documents. Consider whether the following language (or other language appropriate in your circumstances) might be a helpful addition to your… View Article

JR KASMAN, PLLC TRANSACTION TIP SERIES: REPS, WARRANTIES, DEFAULTS & “RECORDABLE DOCUMENTS”

September 14, 2016 | by

We are pleased to announce that our Trending Report will include a series of “transaction tips” for drafting and reviewing commercial real estate and business contracts. Our first transaction tip in this series concerns representations and warranties in recorded documents. A variety of documents may be recorded in the land records where a property is… View Article

FIVE TIPS FOR NEGOTIATING ENTITY TRANSFER RESTRICTIONS

February 23, 2016 | by

The scope of restrictions that will cause a loan default or the borrower or guarantor to have partial or full recourse liability for a loan—otherwise known as non-recourse carve-outs—has evolved and expanded, according to JR Kasman founder Jennifer Kasman. Since these transactions can have such high stakes, Jennifer gave us five tips for negotiating entity transfer restrictions in your loan documents.

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