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Bridging the Gap Between Leasing and Loan Transactions

By Steven L. Rosenfeld
July 28, 2009

Lease documents are often negotiated without sufficiently considering: 1) the effect that certain lease provisions may have on future financings; and/or 2) the lease approval requirements in existing loan documents. Also, loan documents are often negotiated without sufficiently considering how some of the loan provisions will affect the owner's future leasing activities. These problems can be exacerbated when different attorneys (and potentially different business people) are responsible for negotiating the leasing documents and the loan documents without sufficient coordination. This article seeks to address how lawyers representing owners in negotiating leases and/or loan documents can help bridge these gaps.

Financing Considerations in Leasing Transactions

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