Collateral
Assignment of Lease
_________________________,
referred to as DEBTOR, and ____________________________, referred to as SECURED
PARTY, agree:
DEBTOR is indebted to
SECURED PARTY pursuant to a _________________________ dated
_________________________ in the original principal amount of
$______(_______________________________& _____/100 dollars); and DEBTOR is
the lessor under a lease agreement with ___________________, referred to herein
in tenant, for a term of ___________________ months, for the following
described premises:
____________________________________________________
entered into on
_________________________; THEREFORE,
DEBTOR absolutely
assigns to SECURED PARTY, all of DEBTOR’s right title and interest in said
lease, including all rents, profits or other payments on account of said lease
or the occupation of the property. In
the event of a termination of the lease described, DEBTOR agrees that any
further leases of the same premises, or other receipts from the exploitation of
the property shall be assigned to the SECURED PARTY.
DEBTOR herewith
covenants:
that DEBTOR is the sole
owner of the lease and that DEBTOR has the right to assign this lease;
that the DEBTOR has
performed all covenants required to be performed by the lease;
that the DEBTOR has not
previously assigned the lease;
that the LESSEE is not
in default under the lease;
that the present
remaining balance under the lease is
$______(____________________________&_____/100 dollars).
DEBTOR agrees:
that DEBTOR will
continue to perform all obligations under the lease required to be performed by
the DEBTOR;
that the DEBTOR will
make no further assignments of the lease without the prior consent of the
CREDITOR;
not to materially
change the lease without the prior consent of the CREDITOR;
not to agree to a
release of the lessee; termination, buy out or other settlement of the lease
without the prior written consent of the CREDITOR;
to irrevocably appoint
CREDITOR as its agent to enforce the lease and further authorizes CREDITOR to
pursue such legal or other action as may be deemed by CREDITOR to be necessary
to protect its interest herein. CREDITOR may, in its sole discretion, enter
into a settlement of the lease obligation with the LESSEE and may release the
LESSEE on behalf of DEBTOR. DEBTOR agrees that it shall honor such releases.
In the event of a
default by DEBTOR in payment or other terms of the ____________________________,
CREDITOR may take possession of the premises, and manage the same. CREDITOR
shall not be liable for any loss sustained by the DEBTOR due to the management
of the premises should CREDITOR determine to do so, unless the loss is caused
by bad faith, gross negligence or willful misconduct.
Should the CREDITOR
manage the premises, if the lease requires the DEBTOR to pay property or other
taxes, CREDITOR shall withhold sums sufficient from the rental or other
payments to amortize and pay the taxes.
Any net profits after
expenses incurred by CREDITOR in managing the premises shall be applied to the
obligation secured hereby.
This agreement provides
an additional right, cumulative to all other rights, if any, possessed by the
SECURED PARTY, and the SECURED PARTY shall retain all other such rights.
Dated:
_____________________
________________________________
_________________________
Creditor
________________________________
____________________________
Secured Party
Free Download Link: Collateral Assignment of Lease
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