Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Commercial Leasing Law & StrategyKickerFeaturesTopicsCommercial LawRegulationSectionsNewsLJN Newsletters

The Landlord's Lien under the Uniform Commercial Code

By David P. Resnick and Erin Brechtelsbauer
December 26, 2012

A property owner may consider a variety of legal and business protections when negotiating a lease with a tenant that is only marginally creditworthy. While used less frequently than security deposits and personal guarantees, granting the landlord a security interest in its personal property can enhance a tenant's credit. This device may be more effective when conferred by certain types of tenants than by others (e.g., a restaurant or industrial tenant with valuable fixtures and/or inventory, as opposed to a conventional office tenant), but nevertheless, it may provide the landlord with a potent default remedy, particularly in a fragile market.

Many states have enacted statutes that prescribe a landlord's lien, and these liens can vary in scope and strength. Other states grant to a landlord the common-law right of distraint, which may enable a landlord to take possession of personal property located within the premises following a default by the tenant. A third, more universal option for landlords is a consensual security interest granted by the tenant under the lease pursuant to Article 9 of the Uniform Commercial Code (UCC).

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It Image

Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?

Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.

The DOJ's Corporate Enforcement Policy: One Year Later Image

The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.

A Lawyer's System for Active Reading Image

Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.

Protecting Innovation in the Cyber World from Patent Trolls Image

With trillions of dollars to keep watch over, the last thing we need is the distraction of costly litigation brought on by patent assertion entities (PAEs or "patent trolls"), companies that don't make any products but instead seek royalties by asserting their patents against those who do make products.