Landlord's Claim Puts Letter of Credit Proceeds at Risk

A recent bankruptcy decision makes clear that it is risky for a landlord to file a proof of claim in a bankruptcy proceeding when the landlord has substantial security in the form of both a security deposit and letter of credit. Here's how this impacts commercial leasing.

9 minute read August 01, 2016 at 12:00 AM
By
John B. Spitzer
Landlord's Claim Puts Letter of Credit Proceeds at Risk

A recent bankruptcy decision makes clear that it is risky for a landlord to file a proof of claim in a bankruptcy proceeding when the landlord has substantial security in the form of both a security deposit and letter of credit.

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