Description
Know the pros and cons of the use of guaranties from the perspective of both the landlord and the tenant.This highly informative topic is designed to enhance your knowledge and understanding of how various types of guaranties are addressed in today’s commercial lease environment. Explore the pros and cons of the use of guaranties from the perspective of both the landlord and the tenant, and discuss the importance of thoroughly reviewing these critical documents and the various provisions within them.
Date: 2019-04-23 Start Time: End Time:
Learning Objectives
Overview
• Letter of Intent/Term Sheet
• Parties’ Leverage
• General Economic Conditions
• Specific Location of Premises
• Desirability of Particular Property
• Tenant’s Net Worth/Creditworthiness/Financial Condition
Basic Concepts
• Security Deposit • Cash and/or Letter of Credit
• Guaranty as Additional Security
• Lease Provision
• Separate/Stand Alone Document vs. Joinder
• Jointly and Severally vs. Jointly, Severally and Collectively
• Primary Liability
Types of Guaranties
• Corporate vs. Personal
• Full vs. Limited
Landlord Perspective/Protections
• Tail [e.g., X Months After Expiration/Surrender Date (e.g., Curing Violations of Law, Paying Any Fines/Penalties and Paying/Bonding of Liens)]
• Analysis of Standard Form Guaranty/Provisions
Tenant Perspective/Protections
• Death of Guarantor
• New/Replacement Guarantor (i.e., Assignment of Lease to Entity Not Related to Tenant)/Release
• Reasonable Attorneys’ Fees
• Guarantor to Receive Notice of Tenant Default
• Without Giving Effect to/Taking Into Consideration Any Acceleration of Rent
• If Lease Assigned to Unaffiliated Third Party, Guarantor Liability Should Not Be Increased or Expanded Beyond Liability of Guarantor Which Existed at Time the Lease Was Assigned
Miscellaneous Issues
• Reaffirmation of Guaranty in Lease Amendments/Modifications
• Termination • Landlord to Mark Guaranty Canceled and Return to Guarantor
• Designate Tenant as Agent for Service of Process
• Designate Agent for Service of Process
• Guarantee of Payment vs. Guaranty of Collection
CLE (Please check the Detailed Credit Information page for states that have already been approved) ,Additional credit may be available upon request. Contact Lorman at 866-352-9540 for further information.
Jan Alan Lewis, Esq.-Cole Schotz P.C.
