eCourse
Impacts of Financial Institution Failures and Loan Defaults on Rights and Obligations of Landlords and Tenants Under Commercial Leases
Contains material from Jan 2024
Technical Questions?
512.475.6700
service@utcle.org
Includes: Video Audio Paper Slides
- Total Credit Hours:
- 0.75
- Credit Info
- TX, CA
- TX MCLE credit expires: 1/31/2025
Preview Sessions
Show session details
Thomas M. Whelan
Download session materials for offline use
Session 1
—48 mins
0.75
Impacts of Financial Institution Failures and Loan Defaults on Rights and Obligations of Landlords and Tenants Under Commercial Leases (Jan 2024)
A landlord often draws on a loan to fund its construction obligations under the work letter or the tenant improvement allowance. A landlord typically deposits tenant security deposits with an insured financial institution. Sometimes a tenant obtains a letter-of-credit to secure its lease obligations rather than posting a security deposit. In each case, and in numerous others, the insolvency of the lending institution, or the depository institution holding the tenant’s security deposit, or the institution issuing the letter of credit on behalf of the tenant economically harms one or both parties to the lease. This presentation covers the legal and practical concerns raised by the failure of a landlord or tenant’s financial institution, identifies affected lease terms, and offers drafting tips and sample lease provisions to mitigate the adverse consequences of such bank failures and landlord loan defaults.
Originally presented: Nov 2023 Leasing Institute
Thomas M. Whelan,
McGuire, Craddock & Strother, P.C. - Dallas, TX