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#9646 - 01/28/02 08:10 PM UCC and Assignments of R/E Lease Payments
Last Mango Offline
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Joined: Mar 2001
Posts: 293
Too Far From the Beach
In a situation where R/E is the collateral for a commercial loan and the R/E is generating cash flow from leases of units, an assignment of leases is obtained with the mortgage. There is some confusion in our ranks as to whether the assignment of the lease payments should be perfected by filing locally like a fixture or whether it should be filed centrally like other non-R/E collateral. At least one person believes it should be filed in both locations.

We've been waiting on counsel's opinion for over a week. I am curious to know how others see this issue.

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General Discussion
#9647 - 01/29/02 02:27 PM Re: UCC and Assignments of R/E Lease Payments
Anonymous
Unregistered

We record an Assignment of Rents along with the mortgage at the county level.

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#9648 - 01/29/02 09:24 PM Re: UCC and Assignments of R/E Lease Payments
Anonymous
Unregistered

Doug: I would recommend that you wait on your attys reply.

Since Article 9 was revised last summer (in most states), this is an issue that will depend on the state in which the real estate is located and whether that state adopted the uniform version of Revised Article 9.

My opinion is that the right to recieve payments under the lease is an "account" under RA9, therefore a UCC filing in the state where the debtor is located is reqrd. However, if the right to payment under the lease stems from a fixture, timber to be cut, minerals. etc., the result could be different.

Pls share whatever info you eventually learn from your atty. This will help lots of folks.

I AM NOT ENGAGED IN PROVIDING LEGAL ADVICE AND THE VIEWS EXPRESSED ARE NOT THOSE OF MY EMPLOYER


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#9649 - 01/30/02 06:11 PM Re: UCC and Assignments of R/E Lease Payments
Last Mango Offline
Gold Star
Joined: Mar 2001
Posts: 293
Too Far From the Beach
Thanks for the input! Any others?
_________________________
If you keep living straight from the heart, you will know when to stop and to start.

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