Assignment of Lease As Collateral
1. Consideration - Obligation Secured. This Assignment is made by [name] of [address] (Landlord) for value received and as collateral security for a note and all extensions and renewals, in the principal sum of ........ dollars ($........), made this date by Landlord to [name], having an office at [address] (Lender).
2. Identification of Lease and Interest Assigned. Landlord grants and assigns to Lender, Lender's successors and assigns, a security interest in the lease of [date] between Landlord and [name] (Tenant), annexed to this Assignment as Exhibit A (Lease) [omitted], in all rent payments and other sums payable to Landlord, in Landlord's rights and remedies, and in Landlord's interest in the premises described in the Lease (Leased Premises), as well as the right to bring all proceedings that Landlord could bring, either in Landlord's name or in Lender's name, to enforce the Lease and the payment of all sums due under the Lease.
3. Warranties. Landlord warrants that:
a. Genuineness of Lease and in Full Force. The Lease is genuine, enforceable, and the only lease in effect for the Leased Premises.
b. Statements in Lease Are True. All statements contained in the Lease are true.
c. Leased Premises Accepted. The Leased Premises have been delivered to and accepted by Tenant and is satisfactory to Tenant.
d. Compliance With Landlord's Obligations. Landlord will comply with all its warranties and other obligations to Tenant.
e. Title to and Liens Upon Leased Premises. Landlord has title to the Leased Premises free and clear of all liens, encumbrances, and security interests except the Lease and this Assignment.
4. Limitation of Lender's Obligations. Lender assumes no obligation of Landlord under the Lease. Landlord expressly agrees Lender has no obligation to perform any of Landlord's duties and responsibilities under the Lease and that Landlord will perform all of these obligations and duties.
5. Lender's Rights.
a. Tenant's Payments and Obligations. Lender may, in Landlord's name, indorse all remittances or notes received from Tenant and, without notice to Landlord and without affecting Landlord's liability, release any and all rights against Tenant and grant Tenant extensions of time of payment.
b. Perfection and Enforcement of Leasehold Rights. Lender may, at Lender's option and without releasing any of Lender's rights against Landlord, take any steps to perfect, preserve, or enforce any rights of Landlord or Lender against Tenant under the Lease or any negotiable instrument given by Tenant to Landlord in payment of any of Tenant's obligations under the Lease.
6. Further Documents and Filing Fees. Landlord agrees to execute financing statements and other instruments that Lender may, from time to time, require to perfect Lender's rights, under this Assignment, in the Lease and the Leased Premises. Landlord will pay, or reimburse Lender, for all costs of filing any financing, continuation, or termination statements, or such other instruments.
7. Reimbursement of Legal Expenses. Landlord agrees to reimburse Lender for all reasonable attorney fees and all other legal costs and expenses incurred in enforcing Lender's rights, under this Assignment and the Lease, upon default by Landlord or Tenant.
8. Subordination. Landlord subordinates to any rights Lender now or hereafter has against Tenant, any rights Landlord now has or hereafter may acquire by reason of Landlord's payment to Lender of any rent payments under the Lease.
9. Insurance. Landlord will provide, or cause Tenant to provide, insurance on the Leased Premises against those risks and amounts with the loss payable clauses that Lender may require from time to time. The insurers shall be acceptable to Lender. Landlord will deposit such insurance policies or certificates with Lender. However, no additional insurance will be required by Lender if insurance is provided under the terms of the Lease and Lender is named as a loss payee under such policies of insurance.
10. Limitation of Landlord's Rights. Landlord will not, without Lender's prior written consent, (a) accept collections, under the Lease; (b) modify the terms of the Lease; or (c) repossess or accept surrender of the Leased Premises prior to the expiration of the fixed term of the Lease.
11. Application of Rent Collections. All amounts collected by Lender under the Lease will be applied toward payment of Landlord's obligations to Lender.
12. Additional Remedies.
a. Uniform Commercial Code (UCC). In addition to the rights, options, and remedies that Lender is entitled to under this Assignment, Lender is entitled to all rights, options, and remedies against Landlord provided by the UCC in effect in [state].
b. Notice. Landlord agrees that [number] days' notice by Lender, exclusive of Saturdays, Sundays, and legal holidays, of any public sale or the time after which any private sale or other disposition of the Lease or the Leased Premises is to be made constitutes reasonable notice under the UCC.