Problematic Lease Provisions: The Top Three Offenders
Although every commercial lease is unique, there are three provisions that often create the most problems for landlords and tenants: self-help repossession provisions, restrictive covenants, and repair provisions. This article discusses those provisions.
NY's Highest Court Grants License to Change NY's Licensing Law
A year ago, York's highest court, the Court of Appeals, appears to have redefined and narrowed the limits of what distinguishes a license from a lease by expanding the scope of what may be deemed a license. In doing so, the court adopted an approach it had never previously used in such cases.
Will That Restriction Hold Up?
Given their critical nature to both parties, use clauses, exclusives and prohibited uses are among the most heavily negotiated provisions of any retail lease. As a result, the final draft may contain a number of compromises and vagaries that are understood only by the original parties involved.
In the Spotlight: Credit Tenant Lease Financing
While credit tenant loans represent a relatively small scope of overall financing transactions, they are a noteworthy addition to the finance realm due to their creative structures and strong performance. As various financial sources predict that the commercial real estate finance sector is expected to continue on its upward swing, there is a sense that a wider breath of financing structures will be attractive to lenders.
Rent Acceleration Clauses in New York
When is a rent acceleration clause in a commercial lease enforceable? The Court of Appeals recently addressed that question and gave an answer that is unlikely to be helpful to anyone but litigators: The court, however, provided little guidance about when a rent acceleration clause would constitute a penalty.
Leasing Strategies for the Semiconductor Industry
To begin, the semiconductor industry is, of course, enormous. The World Semiconductor Trade Statistics (WSTS) released its end-of-year market indicators, showing a solid growth of 9% to over US $333 billion in sales for 2014 over 2013, driven mainly by double-digit growth in the memory products category.
Cramdown Interest Rates in Chapter 11
Recently, the United States Bankruptcy Court for the Southern District of New York held, among other things, that debtors could cram down their plan of reorganization on their secured lenders under section 1129(b)(2)(A)(i) of the Bankruptcy Code by providing them with replacement notes paying a below-market interest rate using a formula approach to calculate the applicable interest rate. This article analysis this decision.